BUS522 Unit 7 Discussion Latest 2022 September
BUS522 Financial Tools for Managers
Unit 7 Discussion
Deciding on a Decision
Think of a decision that you have had to make in your work (you may use the example you used in the Unit 6 DB) and walk through the five steps listed in section 8.2 of the Managerial Decision Modeling textbook. You do not need to create the model but speak to the inputs that would be involved.
In response to your peers, what, if anything, would you add to each step? Thinking of the MECE framework, what other solutions do you think could have been modeled out?
Take a process and try and breakout the fixed and unit costs, and what revenue (think per unit or per hour) that item would have to bring either to you, or your organization to break even. For example, if you were driving for uber, what are the fixed and variable costs of the car, and how much per hour would you have to make to break even? Try to find data where you can and estimate otherwise.
In response to your peers, do you agree with their analysis/assumptions? What other costs would you factor in?