Beverage Center #4: Student Coaching Slides

Slides:

Advertisements

Similar presentations

At what Q is TR maximized? How do you know this is a maximum

Advertisements

Citywide Spirits Shoppe: Student Coaching Slides

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 11: Managerial Decision in Competitive Markets.

Principles of Microeconomics - Chapter 1

Firm Supply Demand Curve Facing Competitive Firm Supply Decision of a Competitive Firm Producer’s Surplus and Profits Long-Run.

Linear Regression A method of calculating a linear equation for the relationship between two or more variables using multiple data points.

©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster Cost-Volume-Profit Analysis Chapter 3.

Introduction to Monopoly. The Monopolist’s Demand Curve and Marginal Revenue Recall: Optimal output rule: a profit-maximizing firm produces the quantity.

The Basics of Cost-Volume-Profit (CVP) Analysis Contribution margin (CM) is the difference between sales revenue and variable expenses. Next Page Click.

Profit Maximization Chapter 9-1. Profit Maximization The objective of a for-profit firm is to maximize profit. Profit is total revenue less the costs.

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 4 How Businesses Work.

Chapter 2 Marginal Analysis and Optimization Techniques

Cost Behavior Analysis

Business Costs and Revenues Reference 6.1 and 6.2.

Review Demand curve, consumer surplus Price elasticity of demand.

Business Costs and Revenues Reference 6.1 and 6.2.

Cost-Benefit Analysis

Who wants to be an accountant?. What is the Goal of Business Firms?  The goal of every company is to MAXIMIZE PROFITS.

Sales Management Marketing Financial Analysis Review - Topic 6.

Cost, Revenue, and Profit Glen Whitman Dept. of Economics CSUN.

Short-run costs and output decisions 8 CHAPTER. Short-Run Cost Total cost (TC) is the cost of all productive resources used by a firm. Total fixed cost.

Types of Profit; MR=MC John Scalise Mr. Gill 2B 1/25/11.

Honors C.A.D. Mr. Grosso.  Productivity and Cost  Measures of Cost  graphic organizer  Applying this stuff!  Analyzing revenue.

1 Cost Estimation Cost-Volume-Profit Analysis Chapters 6 and 7 Learning Objectives  Perform cost estimation methods (high-low and regression analysis)

EXCERCISES ON BES. Compute the Break-even sales in pesos and units 1.A product line is sold at a unit selling price of P9.00. Variable cost is estimated.

Chapter 5, Section 3 Cost, Revenue, and Profit Maximization.

Chapter 8: Short-Run Costs and Output Decisions. Firm’s Decisions.

PROFIT MAXIMIZATION. Profit Maximization  Profit =  Total Cost = Fixed Cost + Variable Cost  Fixed vs. Variable… examples?  Fixed – rent, loan payments,

The Costs of Production.  Supply and demand are the two words that economists use most often.  Supply and demand are the forces that make market economies.

Revenues, Costs & Profit

Cost-Volume-Profit Analysis

Monopolistic Competition

Lesson 5-3: Cost, Revenue, & Profit Maximization

Cost-Volume-Profit Analysis

By Muhammad Shahid Iqbal

Economics Class Notes October 12 and 13

CHAPTER 7 MARKET STRUCTURE EQUILIBRIUM

Total Revenue, Total Cost, and Profit

Bell Ringer! In your mind, what defines “success” for a business ?

FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY

MODULE 53: PROFIT MAXIMIZATION

Chapter 6 Production Costs

Cost-Volume-Profit Analysis

Costs, Revenue and Profit

Cost-Volume-Profit (CVP) Analysis

© EMC Publishing, LLC.

Quantitative Demand Analysis

© EMC Publishing, LLC.

Making Economic Decisions

Introduction to Perfect Competition

Cost-Benefit Analysis

AMIS 310 Foundations of Accounting

Profit Maximization Chapter 9-1.

The Costs of Production

Cost-Volume-Profit (CVP) Analysis

Slide 12 presents the total revenue received by the monopolist.

© 2007 Thomson South-Western

Profit Maximization.

Beverage Center #4: Student Coaching Slides

Chapter 7 Production Costs

Cost-Volume-Profit Analysis

A what level of production does the business start to make a profit?

8 Short-Run Costs and Output Decisions Chapter Outline

Mod 58: Introduction to Perfect Competition

Cost-Volume-Profit Analysis

Unit 4: Costs of Production

Chapter 04 Firm Production, Cost, and Revenue

Vines Street Student Coaching Slides

Correlation and Simple Linear Regression

Correlation and Simple Linear Regression

Presentation transcript:

Beverage Center #4: Student Coaching Slides Glen Whitman & Shahid Ansari

Basic Facts of the Case New state law allows liquor stores to stay open until 4 a.m. Store currently stays open until 10 p.m. Based on her research, Amber Wright recommended extending hours until 4 a.m. Mike King asked Wright to check her analysis and revise her recommendations if necessary.

Economics Background Concept: Using marginal cost (MC) and marginal revenue (MR) to make profit-maximizing decisions MC = additional cost from doing one more of something MR = additional revenue from doing one more of something Do more when MR > MC. Do less when MR < MC. This will maximize profits.

Economics Background, cont. MR/MC method is usually used to find profit-maximizing quantity of output. But it can be used for many other things. Here, it’s used to find how many hours to stay open.

Accounting Background Contribution Margin (CM) is sales revenue minus variable cost. CM is usually per unit of output, but it can also be found for other cost objects. In this case, we use the CM/customer. CM/customer is the price of goods sold minus the cost of goods sold to the average customer.

Accounting Background, cont. Breakeven customers for a time period = added cost for that time period divided by CM per customer. Safety margin = expected number of added customers minus breakeven number of added customers.

Statistics Background Regression of a dependent variable Y on an independent variable X gives you an estimated equation of a line: Y = a + bX a = coefficient on intercept b = coefficient on independent variable X Use p-value on the intercept coefficient to see if it is statistically significant. p-value should be less than significance of .05.

Statistics Background, cont. Difference of means test: determines whether two samples are likely to have come from different populations. In this case, are evening customers significantly different from day customers in their buying behavior? Use two-tail test, because the difference could go either way. Excel will do almost all of this for you!