## Price Formation

Written by konstantin otto c. botschkowski

Continued from page 1
employees and shareholders ******************************************************** To analyze cost and 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 not operational profit we needs to appeal to specific software of marketing. This software creates a mathematical model, starting from statistics of four variables: w - price; x - sale volume; y - publicity; z - quality And it creates a lineal model: Aw+Bx+Cy+Dz=0, from sampling of four up to ten competitors, of 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 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 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 software defines variables: profit on sale amount, profit on employed capital, employed capital and it optimizes profit on employed capital. ********************************************************** The taxes are analyzed to determine integral participation of aggregate amount in 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

professor of mathematics philosofy

## Tendencies of the Market

Written by konstantin otto c. botschkowski

Continued from page 1
[the whole production joins]. In case of inclusion of new line everything should be calculated again. To foresee cost of new line and impact in old lines, that is viability of new line or and which price does new line viable, we needs to do provisory calculations with all lines. This increases cost of calculation for "pro-forma invoice". Fast calculations with software codified in MASM32 flat is described in http://oz.pro.br/wt/. Coffee-Break http://oz.pro.br/wc/. Download http://oz.pro.br/coffee/coffee.zip/ July of 2005 konstantin otto

professor of mathematics phylosofy

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