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Home > Tools > Cost & Opportunity Model
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Cost Structure of a Typical Manufacturing Engineering Company
The above model demonstrates 3 options available to increase profit
- Increase Sell Price - This is high risk, short term action that is unlikely to work, but does provide the maximum profit increase.
- Grow Turnover - This option is less risky but still difficult to achieve.
- Reduce Cost - This provides a low risk, easily implemented option with a significant profit increase.
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