Total and Differential

Everyone will go to Heaven through faith alone in Jesus Christ. However, the way we evangelize people, bring them to believe in Him as their saviour, depends. There are primarily two methods.

1) Show how good it is to believe in Christ

2) Show how bad it is not to believe in Christ.

Luke 2:10 [The Gospel is] "good tidings of great joy will be to ALL people."

Ex:

1) In Heaven, everyone will have glorified bodies with a peaceful and happy afterlife. Only faith alone in Christ can save you. Thus, everyone will believe and be saved.

2) The wages of sin, which everyone is born with, is death. Only faith alone in Christ can save you. Thus, everyone will believe and be saved.

Heb. 1:2 God appointed Jesus "heir of ALL THINGS, and through whom He made the universe."

Thus, in both cases, everyone is saved. The bad is that everyone's a sinner, the good is that Christ's blood washes away everyone's sins.

In Managerial Accounting, the mathematical calculation of Break-Even Analysis is similar, in which you can find the financial advantage (disadvantage) of choosing one option over another by either

1) Total Method

2) Differential Method

Heb. 8:11 "ALL shall know the Lord, from the least of them to the greatest of them."

Shorthands Disclaimer, sorted alphabetically

( ) = Number inside is negative

C = Cost

Ex = Example

F = Fixed

Inc = Income

Lit = Litre (I use the metric system here since I'm from Canada).

Lvl = Level

MO = Manufacturing Overhead

Mo = Month

Op = Operating

Org = Organization

P = Per

S = Selling

Sell Price = What you pay for the product on store shelves

T = Total

V = Variable

2 Cor. 5:14 "Christ's love compels us, because we are convinced that one died for ALL, and therefore all died."

Ex: ABC Org makes 40 000 litres of juice, p month. Sell price $35 per lit, VC $ 21 per lit, FMO $ 230 000 p month, FSC $ 310 000 p month. Strikes that will last 2 months causes ABC sales to drop to 11 000 lit p month. If ABC close plant, FMO lowered by $ 60 000, FSC lowered by 10%. Start-up cost at shutdown period end $14 000.

I will use both methods to solve this problem. I will show them together when their answers math as proof both work.

Total Method

Sales: 11 000 L * $ 35 P L * 2 Mo = 770 000

Less: VC 11 000 L * $ 21 P L * 2 Mo = 462 000

CM = 11 000 L * (35 - 21) * 2 Mo = 308 000

770 000 - 462 000 = 308 000

Plant Kept Open = 770 000, 462 000, 308 000

Plant Closed = 0, 0, 0

Financial Disadvantage of Closing the Plant = Plant Closed - Plant Kept Open

Net Operating Income = (770 000), 462 000, (308 000)

Differential Method

35 sell price P lit - 21 VC P lit = 14 CM P lit

11 000 P month * 2 months = 22 000 lit lost by plant close

14 P lit * 22 000 lit = ($ 308 000) CM lost by plant close.

Total Method = Differential Method = (308 000)

Total Method

FMO $ 230 000 * 2 Mo = 460 000 Open

170 000 * 2 Mo = $ 340 000 Closed

460 000 - 340 000 = 120 000 Difference

FSC $ 310 000 * 2 Mo = 620 000 Open

$ 310 000 * (1 - 0.1) * 2 Mo = 558 000 Closed

620 000 - 558 000 = 62 000 Difference

TFC = FMO + FSC = 460 000 + 620 000 = 1 080 000 Open

TFC = FMO + FSC = 340 000 + 558 000 = 898 000 Closed

TFC = FMO + FSC = 120 000 + 62 000 = (182 000) Difference

1 080 000 - 898 000 = (182 000)

Differential Method

$ 60 000 * 2 months = $ 120 000 FMO avoid by plant close

310 000 * 0.1 * 2 months = $ 62 000 FSC avoid by plant close

TFC = FMO + FSC = 120 000 + 62 000 = (182 000)

Total Method = Differential Method = (182 000)

Total Method

Op Loss Before Start Up C

= 308 000 CM - 1 080 000 TFC - = (772 000) Open

= 0 CM - 898 000 TFC = 898 000 Closed

= 308 000 CM - 182 000 TFC = 126 000 Difference

Start Up C = (14 000)

Op Loss After Start Up C

= (772 000) - 0 = (772 000) Open

= (898 000) - 14 000 = (912 000) Closed

= (126 000) - 14 000 = (140 000) Difference

912 000 - 772 000 = (140 000)

Differential Method

308 000 - 126 000 = (126 000)

(126 000) - 14 000 start up c = (140 000)

Total Method = Differential Method = (140 000)

Answer: ABC org has a financial disadvantage $ (140 000) if they close the plant. Thus, ABC org has a financial advantage of $ 140 000 if they keep the plant open. Therefore, they will incur the least amount of financial loss by keeping the plant open during the 2 months strike, making it the correct decision from a purely financial standpoint.

I hope that format makes sense. If I wanted to give it to you in pure calculator form, for example.

TFC = ((230000x2)-((230000-60000)x2)+(310000x2)-(310000x(1-0.1)x2) = 182 000

I could, but it looks way more confusing. Hopefully I put it in a way that makes more sense.

But this shows that there's no one way to do evangelism. While the Gospel is essentially

1) Everyone has sin

2) Jesus died for everyone's sins

3) Believe in Him only to be saved.

Rom. 11:36 "Of Him and through Him and to Him are ALL THINGS, to whom be glory forever. Amen"

There's many different ways to present it. Some people respond better to a Total Method, one that shows the grand plan about how they'll have glorified bodies in the afterlife, a future perspective. Others react better to a Differential Method, one that shows the negative effects of sin right now and how to cure it, a present perspective.

1 Cor. 15:22 "Since by man came death, by man also came the resurrection of the dead. For as in Adam ALL died, even so in Christ ALL shall be made alive."

This is only a mathematical allegory to represent that concept. Of course, I only recommend explaining something with mathematics if the person you're talking to responds well to it, like a mathlete.

Phil. 3:21 Jesus is "able even to subdue ALL THINGS to Himself."

No matter how you present the Good News to someone, the ending message is always the same, have faith alone in Jesus Christ to be saved. And once someone is saved, they can never lose their salvation. Once saved, always saved (OSAS).

Rom. 5:18 "Just as the result of one trespass was condemnation of ALL MEN, so also the result of one act of righteousness was justification that brings life for ALL MEN."