Using the Relation Between Quantity, Cost and Price to Increase Company Profit under Existing Production Capacity
Small and medium enterprises are constantly facing problems when looking to increase sales and profits to benefit from economies of scale, managing the complex relation between quantity, price, unit total cost and unit fixed costs. The price, costs and quantities are interconnected and they influenc...
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| Format: | Article |
| Language: | English |
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Dunarea de Jos University of Galati
2022-09-01
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| Series: | Annals of Dunarea de Jos University. Fascicle I : Economics and Applied Informatics |
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| Online Access: | http://eia.feaa.ugal.ro/images/eia/2022_2/DincaMariusSorin.pdf |
| _version_ | 1811164288337838080 |
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| author | Marius Sorin DINCA |
| author_facet | Marius Sorin DINCA |
| author_sort | Marius Sorin DINCA |
| collection | DOAJ |
| description | Small and medium enterprises are constantly facing problems when looking to increase sales and profits to benefit from economies of scale, managing the complex relation between quantity, price, unit total cost and unit fixed costs. The price, costs and quantities are interconnected and they influence each other, considering the competition, the response of the clients and the need for a better use of existing production capacities. This paper offers the managers a solution to the complex issue of correlating the fore-mentioned variables in their efforts of increasing total operating profit. We have identified the correlations managers should observe in their attempts to maximize profits under the constraints of existing production capacity. |
| first_indexed | 2024-04-10T15:20:12Z |
| format | Article |
| id | doaj.art-2eff9d7a06044ccd83375fe8e1ee50e7 |
| institution | Directory Open Access Journal |
| issn | 1584-0409 |
| language | English |
| last_indexed | 2024-04-10T15:20:12Z |
| publishDate | 2022-09-01 |
| publisher | Dunarea de Jos University of Galati |
| record_format | Article |
| series | Annals of Dunarea de Jos University. Fascicle I : Economics and Applied Informatics |
| spelling | doaj.art-2eff9d7a06044ccd83375fe8e1ee50e72023-02-14T14:44:42ZengDunarea de Jos University of GalatiAnnals of Dunarea de Jos University. Fascicle I : Economics and Applied Informatics1584-04092022-09-01282546010.35219/eai15840409267Using the Relation Between Quantity, Cost and Price to Increase Company Profit under Existing Production CapacityMarius Sorin DINCA0Transilvania University of Brasov, RomaniaSmall and medium enterprises are constantly facing problems when looking to increase sales and profits to benefit from economies of scale, managing the complex relation between quantity, price, unit total cost and unit fixed costs. The price, costs and quantities are interconnected and they influence each other, considering the competition, the response of the clients and the need for a better use of existing production capacities. This paper offers the managers a solution to the complex issue of correlating the fore-mentioned variables in their efforts of increasing total operating profit. We have identified the correlations managers should observe in their attempts to maximize profits under the constraints of existing production capacity.http://eia.feaa.ugal.ro/images/eia/2022_2/DincaMariusSorin.pdfmaximizing profit under existing production capacitydiscountsindex of profitindex of profit marginindex of quantities sold |
| spellingShingle | Marius Sorin DINCA Using the Relation Between Quantity, Cost and Price to Increase Company Profit under Existing Production Capacity Annals of Dunarea de Jos University. Fascicle I : Economics and Applied Informatics maximizing profit under existing production capacity discounts index of profit index of profit margin index of quantities sold |
| title | Using the Relation Between Quantity, Cost and Price to Increase Company Profit under Existing Production Capacity |
| title_full | Using the Relation Between Quantity, Cost and Price to Increase Company Profit under Existing Production Capacity |
| title_fullStr | Using the Relation Between Quantity, Cost and Price to Increase Company Profit under Existing Production Capacity |
| title_full_unstemmed | Using the Relation Between Quantity, Cost and Price to Increase Company Profit under Existing Production Capacity |
| title_short | Using the Relation Between Quantity, Cost and Price to Increase Company Profit under Existing Production Capacity |
| title_sort | using the relation between quantity cost and price to increase company profit under existing production capacity |
| topic | maximizing profit under existing production capacity discounts index of profit index of profit margin index of quantities sold |
| url | http://eia.feaa.ugal.ro/images/eia/2022_2/DincaMariusSorin.pdf |
| work_keys_str_mv | AT mariussorindinca usingtherelationbetweenquantitycostandpricetoincreasecompanyprofitunderexistingproductioncapacity |