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Total Cost, Total Revenue, and Profit Change as You Sell More Shoes

Total Cost, Total Revenue, and Profit Change as You Sell More Shoes. Four Types of Elasticity. Price (Demand) Elasticity = %∆Q / %∆P Advertising Elasticity = %∆Q / %∆Ad Elasticity of Markup (Return on Sales, Operational Efficiency)= %∆R / %∆Mp

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Total Cost, Total Revenue, and Profit Change as You Sell More Shoes

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  1. Total Cost, Total Revenue, and Profit Change as You Sell More Shoes

  2. Four Types of Elasticity • Price (Demand) Elasticity = %∆Q / %∆P • Advertising Elasticity = %∆Q / %∆Ad • Elasticity of Markup (Return on Sales, Operational Efficiency)= %∆R / %∆Mp • Elasticity of ROME (ROMI, Marketing Productivity)= %∆ROME / %∆Promotion

  3. Four Types of Elasticity • Price (Demand) Elasticity = %∆Q / %∆P • Advertising Elasticity = %∆Q / %∆Ad • Elasticity of Markup (Return on Sales, Operational Efficiency)= %∆R / %∆Mp • Elasticity of ROME (ROMI, Marketing Productivity)= %∆ROME / %∆Promotion

  4. Total Revenue Goes up if you sell more Shoes, Q $ Total Revenue Quantity of Shoes Sold

  5. Total Cost Goes up faster and faster as you sell more Shoes, $ Total Cost Quantity of Shoes Sold

  6. Profit Goes up and down as you sell more Shoes, Q LOSS $ Total Revenue profit Total Cost LOSS Quantity of Shoes Sold

  7. Profit Goes up and down as you sell more Shoes, Q LOSS $ Total Revenue Total Cost LOSS Profit Quantity of Shoes Sold

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