1. B – C Analysis Mr. Holmes-diddly-iddly November 27, 2012

2. What is it used for? In business, it is used to evaluate what decision one should make by looking at the cost and comparing it to its benefit.

3. How is it done? You take the expected outcome and divide it by the cost it takes to reach that outcome. Whichever number comes out higher is the decision one should make.

4. This sounds valuable. Can you show me an example? Sure! Take this into consideration: Mr. Holmes wants to take his millions from cupcake sales and invest it. Lambert Inc. is offering investors $350 for every $150 invested. The Hutchinson Corp. is offering $275 for every $100 invested. What decision should Mr. Holmes make?

5. These are the answers Lambert Inc. – 2.3 Hutchinson Corp. – 2.75 Based off the math, Mr. Holmes should invest in the Hutchinson Corp.