Marginal income (marginal) is the additional income that the company receives from the sale of a separate additional unit of goods. It is also characterized as the income that was received from the sale of a product after recovering variable costs. It is the marginal income that is the main source of profit formation, as well as covering fixed costs.
Instructions
Step 1
In practical, as well as in scientific literature, marginal revenue refers to the difference between a firm's revenue and its variable costs. At the same time, in fact, the marginal profit contains in its meaning two fundamental components: the fixed costs of the enterprise and its profit. Thus, it turns out that the larger its amount, the greater the likelihood of compensation for the organization's fixed costs and the receipt of profits from economic activities.
Step 2
The marginal income that was received as a whole at the enterprise is calculated using the formula:
MD = CHV - PZ, where
MD is the marginal (marginal) income;
NP is an indicator of net proceeds (excluding VAT, as well as excise taxes);
ПЗ - the value of variable costs.
Step 3
The most informative definition of the marginal income is not for the entire composition of production, but only for each nomenclature unit of output, the following:
MD = (CHV - PZ) / Op = p - b, where
Op is the volume of sales in real (natural) terms;
p is the price of one product;
b - indicator of variable costs per unit of production.
Step 4
In turn, the essence of marginal analysis is based on the analysis of the ratio of sales volume (or production output), cost price, and profit based on predicting the level of these values under given constraints.
Step 5
The analysis of marginal income is the definition of the volume of production, which, at a minimum, provides coverage of the amount of variable costs, that is, each subsequent released unit of the product should not increase the overall loss of the organization.
Step 6
Thus, the marginal income is the increment in total income as a result of an increase in output by one unit:
MD = HELL (Q) / AQ, where
AD (Q) - the increment in total income;
AQ is the value of the increment per unit of the product.
