As a Finance manager, how can you increase net profit
As a Finance manager, how can you increase net profit? Select One A.Lower MTBF B.Increase price C.Increase automation D.Reduce debt
As a Finance manager, how can you increase net profit? Select One A.Lower MTBF B.Increase price C.Increase automation D.Reduce debt
Increasing automation can lead to cost efficiencies and productivity gains, reducing the overall production costs. While it might involve some upfront investment, the long-term benefits often include lower variable costs, increased production efficiency, and improved profit margins.
Increasing the price (option B) could also contribute to higher net profit, but it's essential to balance this with market demand and competition.
Reducing debt (option D) can improve financial leverage and interest expenses, contributing to higher net profit, but this needs to be managed carefully to maintain a healthy balance between debt and equity.
Lowering MTBF (Mean Time Between Failures) is generally not a strategy to increase net profit. It may lead to increased maintenance costs, potential customer dissatisfaction, and reduced overall efficiency.