New study reveals how financial factors impact business decisions and profits.
The article discusses how financial factors impact business decisions. It looks at costs like operational, capital, and investment costs, and how they relate to income from sales. Capital costs for installations are spread out over the installation's lifetime. Production costs include fixed costs (like building costs) and variable costs (like materials and labor). By graphing cost per item sold and sales revenue per item sold, businesses can see how production affects profits.