财务管理与财务分析运营管理课件A推荐.ppt

Supplement A Decision Making Decision Making Break-Even Analysis Break-even analysis is used to compare processes by finding the volume at which two different processes have equal total costs. Break-even point is the volume at which total revenues equal total costs. Variable costs (c) are costs that vary directly with the volume of output. Fixed costs (F) are those costs that remain constant with changes in output level. Break-Even Analysis “Q” is the volume of customers or units, “c” is the unit variable cost, F is fixed costs and p is the revenue per unit cQ is the total variable cost. Total cost = F + cQ Total revenue = pQ Break-even is where pQ = F + cQ (Total revenue = Total cost) Break-Even Analysis can tell you… If a forecast sales volume is sufficient to break even (no profit or no loss) How low variable cost per unit must be to break even given current prices and sales forecast. How low the fixed cost need to be to break even. How price levels affect the break-even volume. Hospital ExampleExample A.1 Hospital ExampleExample A.1 continued Sensitivity AnalysisExample A.2 Application A.1 Application A.1Solution Application A.1Solution Application A.1Solution Two Processes and Make-or-Buy Decisions  Breakeven analysis can be used to choose between two processes or between an internal process and buying those services or materials. The solution finds the point at which the total costs of each of the two alternatives are equal. The forecast volume is then applied to see which alternative has the lowest cost for that volume. Application A.2 Preference Matrix Preference MatrixExample A.4 Preference MatrixExample A.4 continued Preference MatrixExample A.4 continued Preference MatrixExample A.4 continued Preference MatrixExample A.4 continued Preference MatrixExample A.4 continued Decision Trees Decision Trees are schematic models of alternatives available along with their possible consequences. They are used in sequential decision situations. Dec