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Monday, July 19, 2010

2.3.2. Example income statement influence chart


To turn the example influence chart from 2.3.1., into an income-statement influence chart, we look at the example from 2.3.2. In this example, we add price into an enclosed square because it is a decision factor for total revenue. In part 2 of the example, we point an arrow to quantity sold from the price because price also drive the quantity sold. In addition, we add price-elasticity to the chart because it is a fixed variable for the quantity sold variable.

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