Marginal profitability analysis gives you decision information for setting prices, product design, and product profitability.
The course starts by defining marginal costs and marginal profits and then explains how to calculate marginal profitability. You will learn how to create cost-volume-profit (CVP) analyses and breakeven analyses. Marginal profitability is compared to traditional full absorption product costing or activity-based costing to identify the pros and cons of each method and when each is appropriate.
The course provides practical examples of making decisions with marginal profitability analysis. Examples include determining optimal production amounts and which products to promote. The final section explains how to calculate the change in profitability from a price increase and a price decrease.
A worksheet template is provided for this analysis.
This was my first course on Marginal Profitability Analysis and I really enjoyed it. Rob does a fantastic job of explaining key concepts and obviously is very experienced in this field of analysis.
The modules and lessons are listed below. Click here for more detail about what's in this course.