How the company makes profit, it is not easy. We have to balance many
things. If the company would like to make more profit and it produces more product
to increase the output from production to divide with the fixed cost, the more the
company produces the lower variable cost per unit produced. This makes
net profit for that period higher. However, we must look for the inventory left in the
company. If we produce much and there are a lot of inventories left unsold. It is the cost of
the company as well. Even though it looks profitable in the income statement but the
position of the company is not well enough, so you have to balance it well. Think carefully,
produce much in the level that you do marketing campaign and can make much profit.
It will be better if you produce the level that you can manage and still get high profit.
Hope you will have a good luck and be wealthy. Thank you.