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Profit
how a business can improve it’s profitability
Increase output
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Created by
chet singh
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Cards (3)
Why might increase output lead to more profitability
provides
greater
quantity of
product
to be
sold
spreads
fixed
costs over a
greater
number of
units
Will increase output work
Yes
- if the extra
output
can be
sold
and if the
business
has spare
capacity
Why might increase output not work
What if
demand
is
not
there ?
production
quality might be compromised in the
rush
to
produce
more