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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.

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

  • 1
    $\begingroup$ It looks to me like they are givens, not calculated from other data in the table. $\endgroup$ – Ross Millikan Sep 13 '11 at 19:56
  • $\begingroup$ interesting, both givens and independent of each other? $\endgroup$ – Tommy Sep 13 '11 at 20:04
  • $\begingroup$ 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. $\endgroup$ – Ross Millikan Sep 13 '11 at 20:41
  • $\begingroup$ @Ross: Thank you, would this make to interpolate these two values for the new figure? $\endgroup$ – Tommy Sep 13 '11 at 20:46

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