Profitability research in the context of industries or products

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Using marginal income, you can determine which areas or specific types of products and goods bring the company the maximum profit. This requires distributing variable costs between industries or goods and calculating the marginality separately for each of them.

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Fixed and variable expenses of the company
The correct division of costs into static and variable marginal profit is an important aspect. Such classification has a direct dependence on the volume of production and the relationship between volume and costs.

Costs that are subject to change depending on the output produced are called dynamic.

An example would be the cost of raw materials and supplies - the more products you need to produce, the more materials you need. Variable costs include:

goods that are ready for use, provided that they have not been manufactured by the seller;

delivery of goods from the seller's warehouse to the buyer;

use of electricity, water, gas and other utilities in the workplace;

payment for external services of the company, if their presence was necessary for the production of the product. For example, the company itself produces goods, but it has commissioned the creation of a certain part to another company. This means that the second organization receives payment not only for materials, but also for the labor of workers and other indirect costs. For the company, this is considered variable costs;

distribution of compensation to workers for the performance of production tasks. For example, employees are paid per unit of output produced during their working time. Thus, the total labor costs for a given period can be divided by the number of outputs produced during that same period of time.

Various costs can be classified according to how much they vary with output. If costs increase in proportion to productivity, they are said to be directly proportional; if they increase more slowly, they are degressive costs.