100%+200%=300% (INCREASE 200%)
Income = profit , x revenue!!!
Net income~ contribution margin (total unit) (for option, choice)
大多数 no nid consider fixed cost
IF MAKE CHOICE , ONLY CM NO FC, IF FIND PROFIT NID FC
Profit=revenue-v.cost - f.cost
Selling price/sales= cost + mark up
ROI
= Net Operating Income / Average Operating Assets 小心
=………………..(before interest&tax)
=Profit/invested capital
=SALE MARGIN (%) or return on sales X CAPITAL or Investment TURNOVER
=(INCOME/ sales REVENUE) x (Revenue/capital invested)
 After - tax cost  Market   Cost of  Market 

 value    equity  value 
of debt

 of debt   capital  of equity 
Weighted - average
capital


 


cost of

Market
Market
capital
value 
value
of debt
of equity
Economic
Investment center's
Investment  Weighted - average
 Investment
 

value

after - tax
  center's

center's
cost of

 total assets

added
operatingincome
current liabilities 
capital
=Net income –(% cost of capital x Capital employed)
Residual Income = Operating Income or Profit – (Average Invested Assets x Hurdle
Rate or Imputed Interest Rate)
Markup (unit)=targeted profit+fixed cost
/ contribution margin
 ROI is preferred over residual income when evaluating investment centers of
different sizes.
Labour productivi ty 
Number of units produced
Number of direct labour hours
Internal-Rate-of-Return Method:
NPV method: accept project if NPV +ve
Internal Rate of Return: project’s rate of return must be greater than the cost of capital or
hurdle rate.
Income = Revenue - Expenses + Gains - Losses
=