Formulas Flashcards

1
Q

ROI

A

Operating profit/ Total investment

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2
Q

Utilisation

A

Current capacity/ Max Capacity

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3
Q

Economies of scale

A

AUC(A)utilisationA - AUC (B) utilisation (A0

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4
Q

Diseconomies of scale

A

AUC(B)utilisationB - AUC(B)utilisationA

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5
Q

Economies of fixed cost absorption

A

AUC(B)utilisationB- AUC(A)utilisationA

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6
Q

Profit point

A

FC+TOI/p-VC

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7
Q
A
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