MANAGEMENT SYSTEM FOR BUSINESS DEVELOPMENT
The main objective of profitability management of the Company is to maximize the absolute value of profit and the stability of its formation in time.
The management of profitability involves:
- study of the interrelation of the indicators "income-expenditure-profit" and the analysis of the conditions for the formation of income and profits
- cost management by controlling the process of their formation, classification, behavior, fixed cost and variable costs, semi-fixed, semi-variable, marginal cost
- break-even analysis as a basis for substantiating managerial decisions, estimating and forecasting the effectiveness of the activity
- calculation of marginal income (contribution (per uhit)), margin of safety, operational leverage
- analysis of the effect of the effect on the profit of a change in one of the elements of the operating leverage (prices, variables, or fixed costs)
- the study of the interaction of operational and financial levers (financial leverage) in which the multiplier effect of the break-even state is calculated, the target profit analysis is analyzed and a margin analysis is performed