Price Formation The price is formed at the market. Increasing
the price, it lowers the sale volume. Increasing the publicity,
it increases the sale volume. Increasing the product quality
[investing in design], it increases the sale volume. In this
model of tendencies we have variables: price, sale volume,
publicity and product quality. Are missing variables; profit
relative to the sale amount, profit relative to the employed
capital and employed capital. As profit is here understood this
variable under several focuses [sees below]. In this simple
model, of tendencies, we have seven variables. Cost consists of:
Production cost, bureaucratic costs, depreciation of the project
[design], insurance cost, commercial costs and transport cost.
01-00Production cost 01-01Material and components 01-02Labor
01-03Energy 01-04 Depreciation of the industrial equipment 01-05
Rent of the industrial space 01-06 Allotment Bureaucratic costs
Territorial tax 01-07Insurance costs [business risk] Against
sinister Against commercial risk 02-00 Depreciation of the
project [design] of the product 03-00 Cost of the transport
Transport Insurance Taxes [trading] 04-00 Commercial costs
Publicity Commissions 05-00 Profit consist in: 05-01 Direct
taxes Excise ect... 05-02 Profit of the company [gross]
Operational profit Not operational profit [positive or negative]
06-00 Company profit income tax
******************************************************** Taxes
Direct taxes Company income tax Employees Income tax
Shareholders Income tax Tax built-in the expenses of consumption
of employees and shareholders
******************************************************** To
analyze the cost and the operational profit, in viable period,
we needs to appeal to a fast software, for instance that
described in: http://oz.pro.br/w/ . For analysis of the not
operational profit we needs to appeal to the specific software
of marketing. This software creates a mathematical model,
starting from the statistics of the four variables: w - price; x
- sale volume; y - publicity; z - quality And it creates a
lineal model: Aw+Bx+Cy+Dz=0, from the sampling of four up to ten
competitors, of the same market. For instance: manufacturers of
soft drinks, of refrigerators, of televisions, ... Each
calculation is made with four competitors, to obtain four
coefficients [A, B, C, D]. In the case of 'n' [more than four]
competitors, forming 'm' goops of four, it obtain 'm' games of
coefficients and a game of an average of these. This lineal
model is exact only for small variations. Larger accuracy
obtains the no lineal model: Aw+Bx+CA y^2+CBy+Dz=0. The models
are less exact as larger variation. But better a model less
exact than any model. With this model the software defines the
variables: profit on sale amount, profit on employed capital,
employed capital and it optimizes profit on employed capital.
********************************************************** The
taxes are analyzed to determine the integral participation of
aggregate amount in the state economy. Coffee-Break
http://oz.pro.br/wc/ Download http://oz.pro.br/coffee/coffee.zip
Konstantin Otto, June, 2005 oz@oz.pro.br
About the author:
Professor of mathematics' philosophy retired I write articles in
four languages, since 1946. More of them are specific.
oz@oz.pro.br
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