Paste products with price, variable cost, demand and bottleneck time to get break-even revenue, the monthly income statement and the mix that maximizes profit with existing capacity.
Pre-sizing and estimating tool: results do not replace design, calculations or reports signed by a licensed professional, nor verification against the applicable codes and standards.
Product ranking changes when you look at the resource that limits output.
Revenue and total cost versus mix volume, as a percentage of the optimal mix.
The report gathers this page's inputs, results, equations, assumptions and references, with fields for project, engineer and revision. In the print dialog, choose Save as PDF.
Compute the mix’s average contribution margin ratio (total contribution ÷ total revenue) and divide fixed costs by it. The result is the monthly revenue at which profit is zero.
Because when capacity is short, each bottleneck hour is worth what it earns. A high-margin product that takes long on the bottleneck can earn less than a lower-margin one.
Raw material, packaging, energy and consumables that scale with volume. Fixed labor and depreciation stay in fixed costs.
Important notice: Indus Metrics tools produce estimates and pre-sizing results from the data you enter and from published engineering methods. They do not replace design, calculations or reports signed by a licensed professional engineer (PE), nor verification against the applicable codes, standards and regulations, such as OSHA rules and the ASME codes. Material and fuel properties vary: check manufacturer data or your own process analyses before deciding. By using this site you agree to the Terms of Use.
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