ENGR 100 Lecture Notes - Lecture 28: Project Charter, Intelligence Quotient, Sensitivity Analysis
Document Summary
R-w-w screening tool building the project. innovation makes strategic sense. R = i c volume increases. V = variable costs for the production level of q units. Explores the nature of the potential market and looks at the feasibility of. Considers whether the innovation and the company can be competitive. Examines the profit potential and whether developing the. Profit r at sales of q units. Break even analysis is usually piecewise linear as costs per unit usually drop as. Break-even analysis is only a supply side (i. e. costs only) analysis, as it tells you. It assumes that fixed costs (fc) are constant. It assumes average variable costs are constant per unit of output, at least in the range. It assumes that the quantity of goods produced is equal to the quantity of goods sold. In multi-product companies, it assumes that the relative proportions of each product.
