Note: RSC is still being used for the material. The word "Points" is being used for any currency.
The breakeven point can be included in the SDC. The breakeven comes in the form of banding. The breakeven banding can be inside, outside the supply demand banding or overlapping.
This example uses the following:
Data Tabulation:
Price (Points): 1, 2, 3, 4, 5, 6, 7, 8, 9
Supply (Units) RSC: 9, 8, 7, 6, 5, 4, 3, 2, 1
If it was determined to breakeven 4 units offered at 7 points each, the line drawn from 0,4 to 7,0 would be the upper limit of the breakeven banding. The lower limit would be 7 units offer at 4 points each. The lower limit line for the breakeven banding would be drawn from 0,7 to 4,0.
The optimum unit price would be 5 units at 5 points each.
William Charles Simpson 1st Write: Tue, Jan 20, '04 2nd Write: Wed, Aug 09, '06 Santa Cruz CA USA
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