Table of Contents
Cost Analysis
Introduction
Incorrect analysis can ...
You pay $5K for option to buy land ...
Forget Sunk Cost!
PPT Slide
Another Flight?
More analysis ...
Should Continental Add Flight?
Other Important Considerations
Transportation Costs
Another Transportation Cost
Firm Size & Plant Size
Suppose firm builds another MES ...
Economies ...
Diseconomies ...
Economies of Scope
Economies of Scope ...
Learning Curves
Break-Even Output
Break-Even Output
Degree of Operating Leverage (DOL)
Now for the most difficult part ...
Difficulties
More Difficulties
More Difficulties
Another Difficulty - Inflation
Cost Index Example
Divide Cost Per Unit in Later Year by Earlier Year
Electricity & Gas Calculations
How much to buy same market basket?
The Average Change in Prices for CSU Chico
Other Interesting Data
More Interesting Data
Even More Interesting Data
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