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