When you examine the performance of your business, the results of one of your choices or research the impacts of possible business actions you can take, you create an analysis. Analyzing only the objective results helps you compare them against qualitative results. If the quantitative results don’t justify the action, you can skip going any further to determine what the intangible effects will be. For example, raising your prices might reduce your sales. A quantitative analysis will try to determine the net decrease in sales, the effect on profit margins of the revenue increase and the net increase or decrease in your gross profits. This quantitative analysis provides you with an objective look at the effects of the price increase. Comparing your quarterly expenses to your projected budget provides a quantitative analysis of your performance. The same happens when you compare sales projections to actual sales.
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