Difference between revisions of "Volume hurdle"
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| − | In conducting a [[Profit sensitivity analysis]] of a price decrease, the '''volume hurdle''' defines the minimum required volume increase for a price decrease to improve the [[Profit equation of the firm|firm’s profits]]. | + | In conducting a [[Profit sensitivity analysis|profit sensitivity analysis]] of a price decrease, the '''volume hurdle''' defines the minimum required volume increase for a price decrease to improve the [[Profit equation of the firm|firm’s profits]]. |
Latest revision as of 19:15, 9 January 2013
In conducting a profit sensitivity analysis of a price decrease, the volume hurdle defines the minimum required volume increase for a price decrease to improve the firm’s profits.