MGSC 395 Lecture 1: 9/27 Notes
Document Summary
Finance is a core function in a business. Marketing- you might end up with a great product that won"t sell because you didn"t figure out what people want and who wants it. Rubbermaid- best example of a company who can develop so many new products and innovations in one year (research and development) Revenue= (150+100)3(50)= 37500/ class input= 25000 + 20(50) +4000= 30000/class. Break-even analysis- analysis to compare processes to finding the volume at 2 different processes have equal total costs. Break-even quantity- the volume at which total revenues equal total costs. Variable cost (c)- the portion of the total cost that varies directly with volume of output. Fixed cost (f)- the portion of the total cost that remains constant regardless of changes in levels of output. Quantity (q)- the number of customers served or units produced per year. 4,800,000= 2,650,000+2,200,000= 4,850,000 no they won"t break even. F/ (p-c)= 2,650,000/ ((4+15+5)-(2+9)) = 203,846 people to break even.
