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TABLE OF CONTENTS
Introduction vii
End of an Era viii
The Profit Mandate viii
The "P Word" ix
How to Use This Book x
Questions on the Introduction xi
1-Business Definition 1
Mission Statement 3
Business Clarity 5
Vision 6
Corporate Identity 7
Profit Obligation 8
Questions on Chapter 1: Business Definition 11
2-Products and Product Lines 13
Product Line Profitability 13
Determining Your Products 14
Analyzing Product Profitability 15
Acting on Product Profitability 16
Questions on Chapter 2: Products and Product Lines 17
3-Profit Formula 19
Profit Accountability 19
What Is the Profit Formula? 20
How the Profit Formula Works 20
Applying the Profit Formula 24
Reporting Profit Variables 27
Just a Note on Data 28
Analyzing Product Profit 28
Questions on Chapter 3: Profit Formula 35
4-Minizing Costs 37
Figuring Out Costs 37
Cost Vocabulary 38
Cost Detail
Cost Measures 45
Calculating Cost 46
Influencing Cost 48
Conclusion 49
Questions on Chapter 4: Minimizing Costs 50
5-Maximizing Revenues 53
Terminology 53
Revenue in a Not-for-Profit World 54
Measures of Reimbursement 54
Payer Categories 55
Revenue Types 55
Influencing Revenue 56
Unit Profitability 63
Questions on Chapter 5: Maximizing Revenue 64
6-Increasing Sales Volume 67
Principles of Profitability 67
Not-for-Profit Sales Functions 67
Ways To Increase Sales Volume 68
Marketing and the Marketplace 70
Market Research 74
Who Are Your Customers 74
Who Is the Competition? 77
Product Portfolio 80
Strategic Marketing Plan 83
The Marketing Plan 86
Sales Plan 89
Conclusion 90
Questions on Chapter 6: Increasing Sales Volume 91
7-Monitoring Performance 97
Goals of Financial Reporting 97
Accompanying Notes 108
Trend Reporting 109
Trend Variables 110
Questions on Chapter 7: Monitoring Performance 113
8-Return on Investment 117
Concept of ROI 117
Calculating ROI 118
Profitability 122
Questions on Chapter 8: Return on Investment 123
Index 125
