DS 412 TEST 1
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
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| Productivity = | output/input or total rev/total costs or (P.Q)/TC
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| When do revenues exceed costs? | Total Annual Rev= Total Annual Cost
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| When do revenues exceed costs2? | Total Annual Revenue =
Ann. Fixed Cost + Ann. Variable Cost
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| PQ = | F + c.Q (P=price $/unit,c=Variable cost in $/unit,F=ann.fixed cost $/yr,Q=number of units produced)
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| Production determines: | F & c
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| Marketing determines: | P & C
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| Break Even Analysis (BEA) | Q = F/(P-c)
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| When given 2 eq & costs stayed the same (looking for F & c costs) | TC=F+c.Q
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| Make or Buy | Fm + Cm*Q = Fb + Cb*Q
m=make; b=buy
# units needed per yr exceed BE volume (Q)?
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| Process Focused | low volume customized products (aircraft, interior design)
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| Product-focused | high volume standard (paper clips, tires, floppy disks)
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| Life cycle | Introduction, growth, maturity, decline, death
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