Notes
Chapter 1
1.Mercator Minerals (2012).
2.Welch (2006).
3.We are assuming no further decline in customer traffic over the next several months.
4.Welch (2006).
Chapter 2
1.Sometimes these are referred to as “incremental” revenues and costs.
2.Unless, of course, the boxes were extremely large!
3.We are assuming that “other” expenses do not vary with the number of boxes sold.
4.Healy and Palepu (2003).
5.We are assuming the promotional expenses have already been incurred. The group may have set a budget of $300, but may decide how much to spend as the fundraiser draws nearer. Any portion that is unspent, but may be spent is avoidable; any portion that has been committed to, but cannot be recovered is unavoidable.
Chapter 3
1.Woo (2011).
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