Lesson ProgressPhase 2 of 6
Phase 2Introduction
Introduction: Scenario Comparison & Sensitivity Reasoning
Build structured comparison tables to analyze multiple scenarios.
đź“š Phase 2: Introduction
Building the Scenario Comparison Table
Structured Analysis for Pricing DecisionsSarah needed a way to see both scenarios at once—not just the math, but the business trade-offs. Jennifer showed her how to build a structured comparison table.
Sarah's Base Numbers (from Lesson 03)
| Metric | Current |
|---|---|
| Fixed Costs | $8,100 |
| Variable Cost / Project | $880 |
| Current Price | $1,350 |
| Current Volume | 24 projects |
| Contribution Margin | $470 ($1,350 - $880) |
| Current Profit | $3,180 |
The Two-Path Comparison
| Metric | Path A: Premium | Path B: Volume |
|---|---|---|
| Price | $1,635 | $1,350 |
| Volume | 24 projects | 39 projects |
| Revenue | $39,240 | $52,650 |
| Variable Costs | $21,120 | $34,320 |
| Contribution Margin | $18,120 | $18,320 |
| Fixed Costs | $8,100 | $8,100 |
| Profit | $10,020 | $10,220 |
🔍 What the Table Reveals
- Both paths work mathematically—they both hit ~$10,000 profit
- Path B (Volume) actually earns $200 more—but needs 15 more projects
- Contribution margin is nearly identical—$470 vs. $472 per project
- The real question is capacity and market—not just the spreadsheet
Scenario Comparison Vocabulary
Master the key terms for comparing pricing scenarios.
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đź“ť Fill in the Blanks
Complete each sentence by typing the missing word or phrase
đź“š Word Bank
Available answers
Strategy Note: Sensitivity Analysis
The comparison table reveals something important: volume changes affect revenue more than price changes in this case. But this isn't always true!
In Guided Practice, we'll add a complication—a competitor price change—that shifts which variable matters most. Understanding sensitivity helps Sarah prioritize which "lever" to pull.
Ready for Complications?
In Guided Practice, we'll add a meaningful complication: what happens when a competitor drops their price? This will shift the scenario comparison dramatically.