Estimate Price Elasticity

Explanation

Use this function to estimate price elasticity. It is calculated as follows.  

E = P2 - P1 x     V1     
          P1         V1 - V2                                                             

where  E  = Estimated Elasticity
          P1 = Price 1
          P2 = Price 2
          V1 = Volume 1
          V2 = Volume 2

Prerequisites

The total cost must be calculated.

System Effects

No system effects.

Window

Price Elasticity Estimation
Cost Volume Profit Analysis

Related Window Descriptions

Price Elasticity Estimation
Cost Volume Profit Analysis

Procedure

1. Open the Price Elasticity Estimation window.
2. In the Price 1 field, enter the price for the Part at the first Volume situation.
3. In the Price 2 field, enter the price for the Part at the second Volume situation.
4. In the Expert No Field, enter an Expert ID.
5. In the Expert Name field, enter the Name of the Expert.
6. In the Volume One field, enter the volume for the Part at the first Volume situation.
7. In the Volume Two field, enter the volume for the Part at the second Volume situation.
8. Repeat steps 1-6 for each Expert Estimation you want to register.
9. Save the changes.