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how can i explain engineering economics to the layman?
in the traditional estimating process, "cost plus" is the established norm. cost plus 20% on $1000 is obviously $1200.
i try to explain how using the divisible multiplier .8 ($12500) is the correct way to mark up a project 20% i am met with heated opposition, because they have always known 200 to be 20% of 1000. any suggestions?
find a job or post a job opening
not sure, but if your are increasing it by 20%... you are effectively multiplying it by 1.2 or dividing it by (1/1.2)
dik
i'd be curious to know where "the correct way to mark up a project" came from. that sounds like "the way we always did it" to me. if you "mark something up 20%", you add 20% of the original cost to it and $1000 becomes $1200. if you want "20% of the final price to be mark-up", then you need 1000/(1-.2)= $1250. but i would never assume the latter method if it was just referred to as a 20% markup.

2009-09-09, 05:15 PM	#1
huangyhg 超级版主注册日期: 04-03 帖子: 18592 精华: 36 现金: 249466 标准币资产: 1080358888 标准币	how can i explain engineering economics to the layman how can i explain engineering economics to the layman? in the traditional estimating process, "cost plus" is the established norm. cost plus 20% on $1000 is obviously $1200. i try to explain how using the divisible multiplier .8 ($12500) is the correct way to mark up a project 20% i am met with heated opposition, because they have always known 200 to be 20% of 1000. any suggestions? find a job or post a job opening not sure, but if your are increasing it by 20%... you are effectively multiplying it by 1.2 or dividing it by (1/1.2) dik i'd be curious to know where "the correct way to mark up a project" came from. that sounds like "the way we always did it" to me. if you "mark something up 20%", you add 20% of the original cost to it and $1000 becomes $1200. if you want "20% of the final price to be mark-up", then you need 1000/(1-.2)= $1250. but i would never assume the latter method if it was just referred to as a 20% markup. __________________ 借用达朗贝尔的名言：前进吧，你会得到信心! [url="http://www.dimcax.com"]几何尺寸与公差标准[/url]