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Transcript of incremental concept
The two basic concepts in this analysis are incremental cost and incremental revenue.
1.The change in total cost resulting from a decision.
2.The change in total revenue resulting from a decision. examples:
The skittles company makes 1000 bags of skittles a day, with 20 skittles in each bag. What if one day the machine that counts them were to miss count and put 22 skittles into each bag. How big of a difference do you think that would make in the company??? If just for one day the machine were to miss count by 2 skittles. The skittles company would be able to make 100 bags. now trade papers and have a partner grade it 1…...difference $700 without the sale 1400 with sale 700 2…...old price = 384 new price =448...difference $64 per day 3…...difference is $30 more money one the last day 4…...old price =1350 new price=1800 difference 450 5…..the same Activity Time!!!! Math problems ): BOOM WE'RE DONE