Profit Is Computed as the Difference Between Total Revenue from Sales

question 36

Essay

Profit is computed as the difference between total revenue from sales and total cost of production. Revenue depends on the market share captured by a company and the size of the target market. Various marketing decisions taken by managers are reflected upon the market share. The decisions also have an impact on marketing costs which in turn will affect the total cost of production. Construct an influence diagram that relates these variables.

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Definitions:

Energy-Efficient

Describes technologies or processes that use less energy to perform the same function as conventional ones, reducing energy waste.

Beverage Container

A receptacle used to hold liquids for consumption, such as bottles, cans, or cups.

Incinerators

Incinerators are devices or facilities used to burn waste materials at high temperatures, reducing their volume and sometimes generating energy.

Toxic Substances

Chemicals or mixtures that can cause harm or danger to organisms, the environment, or both when released or exposed in significant quantities.