# How do I calculate cost savings and profits in this example?

How are profits and cost savings calculated in this table?

Is there enough given data to calculate these two?

Here is what I do know:

ROI = (cum profits - cum cost)/cum cost
Sales = (Market Size * Market Share)
Change in profits = (new profit - old profit + cost savings)
Cum. Change in profits = addition of profits from each year
Market share = given
Cum. Cost = given

(Next, need to work out an alternate version when the market size grows only \$20M/year from 2004 - some linear interpolation required.)

I am not sure how these 2 values are calculated, any help in the right direction is appreciated.

Thank You.

EDIT:
Looks like difference of new and old profit is same to difference between cost savings and change in profits...

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It looks to me like they are givens, not calculated from other data in the table. – Ross Millikan Sep 13 '11 at 19:56
interesting, both givens and independent of each other? – Tommy Sep 13 '11 at 20:04
I can't see how to calculate them from the other data. I agree with your edit, but that restates the equation you gave for change in profits. So I think these two are used just as you say. – Ross Millikan Sep 13 '11 at 20:41
@Ross: Thank you, would this make to interpolate these two values for the new figure? – Tommy Sep 13 '11 at 20:46