2.3.1. Example

In the example influence chart 2.3.1., we start profit enclosed with a hexagon to separate it from other factors that determine the profit. Next, we figure out what variables make up the profit and enclose those in single circles, which are total revenue and total cost. Then we move on to determine what makes up the total cost, which are variable cost and fixed cost. The fixed cost is enclosed in a upside down triangle to show that it is a fixed variable. Next, we drill down further to determine what variable make up the variable cost. The variables that determine variable cost are quantity sold and unit cost, which unit cost is another fixed variable. As you can see with the influence chart, the further we drill down into a problem you find out what factors determine each variable, which in turn generate a profit.