What If

What Happens to Financial Performance When Changes are Made?

Businesses have the potential to change many of the Critical Profit Variables (CPVs) such as sales, inventory turnover, gross margin percentage and the like. It is useful to know what happens when such changes are made, before the changes are implemented.

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Question of the Day

We feel we have to get more price aggressive to drive up our sales volume. How large of a sales increase will be required to offset a price cut?

Answer

Probably a lot more than you think.