Profit Is Computed as the Difference Between Total Revenue from Sales

question 53

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:

Successive Points

Points or values that follow one another in a sequence or order.

Line Chart

A type of chart that displays information as a series of data points connected by straight line segments, often used to visualize trends over time.

Histogram

is a type of graph that represents the distribution of numerical data, showing the number of data points that fall within a range of values, called bins.

Dot Plot

A graphical display of data using dots, where each dot represents one or more observations.