On Profit Sensitivity Analysis
Jingyu Chen
Abstract
Jingyu Chen
Abstract
This paper firstly elaborates the practical significance of profit sensitivity analysis,the computational method and concrete utilization in the practical work.Then it identifies four factors which influence the profit: the sales volume,the selling price,the unit variable cost,the fixed cost and their impact on the profit(sensitive coefficient).It shows the problems existed in the actual working and finally proposes the measures to solve and improve such problems on this basis.
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This paper firstly elaborates the practical significance of profit sensitivity analysis,the computational method and concrete utilization in the practical work.Then it identifies four factors which influence the profit: the sales volume,the selling price,the unit variable cost,the fixed cost and their impact on the profit(sensitive coefficient).It shows the problems existed in the actual working and finally proposes the measures to solve and improve such problems on this basis.
Key concepts: Profit (economics), Unit price, Gross profit, Operations research, Sensitivity (control systems), Computer science, Industrial organization, Econometrics