A Model for Estimating the Risk of Profit Loss in Industrial Enterprises
Purpose: In this paper we introduced a model for prognosis of profit of industrial enterprises. This model gives a possibility to make a prognosis of profit of these enterprises with account increasing of quantity of manufactured products, as well as various expenses of enterprises (raw material purchase costs, transportation costs, ...). Design/Methodology/Approach: An analytical approach for analyzing of the influence of changing of various parameters on the profit of industrial enterprises has been introduced. Findings: The model gives a possibility to decrease risk of decreasing of profit due to decreasing of overhead expenses. Practical Implications: The model gives a possibility to make the prognosis of profit with account changing of quantity of manufactured products, as well as various expenses (raw materials, transportation costs, ...). Originality/Value: In this paper we introduce a model for prognosis of profit of industrial enterprises with account of changing the volume of manufacturing production.