RELATIONSHIP BETWEEN DICTIONARIES OF CAPACITY (TRAINING) AND PROFIT…
Bosses often ask what training has to do with profit, I will prove it.
At the breakeven point, N = 3,000 units.
The variable cost per unit is X dong.
So at N = 3,000.
Break-even business is profit = 0.
That is revenue = Cost
That means Selling price x Output = (Output x Variable costs) + Fixed costs.
Among many fixed costs, there is a salary fund with 90% of the fixed salary, which means that businesses without the number still have to spend it.
At N = 3001, the business still incurs variable costs, but no additional fixed charges are incurred, so we take this line and turn it into a profit.
At N = 8,000, businesses still incur variable costs (output x variable cost per unit), but fixed costs do not increase as fast as the growth rate of your business, and your team.
Selling price x Output = (Output x variable costs) + Fixed costs (salary fund, office, depreciation, factory …)
In other words, the salary fund does not increase as fast as the growth rate of the company.
That is, if your team increases productivity, by:
– More cohesive
– Better coordination
– Less resentment
– Good skills to make customers happier so that they are willing to pay
– Meeting talented leaders Elevate your team faster
– Mid-level management makes your employees better
…
Is it true that every year, the business becomes more efficient and more profitable?
And if you don’t train them to upgrade, how will you make a lot of money if you surpass the breakeven point of your business? Hihihi
Proof Equation: Done.