Professional Documents
Culture Documents
To accompany
Quantitative Analysis for Management, Tenth Edition,
by Render, Stair, and Hanna
Power Point slides created by Jeff Heyl © 2009 Prentice-Hall, Inc.
Learning Objectives
After completing this chapter, students will be able to:
Quantitative Meaningful
Raw Data Analysis Information
Developing a Model
Developing a Solution
$ Advertising
Scale Schematic
models models
© 2009 Prentice-Hall, Inc. 1–9
Developing a Model
Garbage In
Process
Garbage
Out
s = 10 f = 1,000 v=5
Number of spring sets sold = X
Profits = sX – f – vX
0 = sX – f – vX, or 0 = (s – v)X – f
Solving for X, we have
f = (s – v)X
f
X= s–v
Fixed cost
BEP = (Selling price per unit) – (Variable cost per unit)
Fixed cost
BEP = (Selling price per unit) – (Variable cost per unit)