# Dmt Analysis

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Chapter One Analysis Based on the Excel Problem of chapter one, if the total capacity for this business is 725 will you stay in it? If you want to stay in it what price you need to obtain a break even point of 725? On Problem #4 the Break-Even Analysis was as follows: Price per Unit $1. 50 V. Cost per Unit $0. 50 Total Fixed Cost $750. 00 Break Even in Units= Fixed Cost Unit Contribution margin= Unit Contribution Margin (Price per Unit – V. Cost per Unit) = 750/ (1. 50 -. 50) = 750 units Break Even Point = Price per Unit x Break Even in Units 750 units x $1. 50 = $1125

To be fair and honest as a student I would not stay in a business that I break even with no profit and doing a lot of effort just for the pleasure of working or maintaining the business. As a Business owner I would stay in it, hoping to have a marketing technique that would increase the chances of a profitable forecast. If we use the new information the Break-Even Analysis would be as follows: Price per Unit $1 725 units Break Even Point = Price per Unit x Break Even in Units 725 units x $1= $725 Chapter Two Analysis Based on the excel problem of chapter 2, between cost and sales which column shows more stability or control?

A change in the cost can drastically affect the sales. A change in sales volume can also affect the net profit. Another variable that is important is the price of the product which interacts with volume and costs. With the Breakeven analysis it showed us the relationship between the prices of the product sold, the volume of the product, and costs or expenses. In this case the sales were not so much affected by the cost. In retrospective the sales could be affected by the quantity of the product sold. If you compare the trend of cost/unit versus the profit/unit using a scatter chart, what can you infer from their behavior?

I would say that the product profit shows a substantial increment from the months of August to December. In regards to the product cost per unit on January showed a low profit even though the cost per unit was 12, but on the other hand on December the cost per unit was 10. 72E+17 and it had the highest profit of the year. We can infer that the month had a major impact on the profit rather than the cost per unit. Chapter Three Analysis Based on problem 8, which data set is more stable. Base your answer on standard deviation values. Compare both frequency histograms and which shows a normal distribution behavior?

The standard Deviation comparing both sets of data only shows a slight difference on the numbers (a difference of only 1. 38187054), but in the histograms both show a huge difference on the frequencies of each data set, but shows a similarity on the cumulative percentage. Data set #2 seem to be more stable even though the grades of the student were lower than data set #1. Data set#2 shows a relative stability in regards the frequency on the histograms, when comparing the frequency histograms data set #2 has more frequency on number two’s than data set #1 on frequency on the number three’s.

In this case Data set #2 shows a normal distribution behavior. Based on problem 11, if you are the owner of the Eastern airlines how many seats do you need to cover the East Coast flights with a monthly total demand of 487,000 people for the entire airline? If the airplane has 200 seats, how you will distribute them by first class, business class and coach? In this case we can infer that there are 100 seats in the plane, therefore making a total of 100% passengers. On the problem it was specified that 20% are first class, 20% are business class and 60% are coach class.

We know for a fact that commercial flight have a limited number on the first class seats and if we make a rational explanation of this case we can infer that 20 is the number of seats on first class. Since the Analysis asks the number of seats needed monthly we can say that we need 4,870 seats each month to cover the demand of 100 seats daily and 487,000 passengers monthly(100/487,000) =4,870. In the case of the second question, we can simulate a bigger commercial plane that holds 200 seats. In this case 40 seats will be assigning to first class, 40 to business class and 120 to coach class.