Product 2 generates more profit for the company, using one minute of machine a1 to process product 1 or using one minute of machine a1 to process product 2.
Four important elements can contribute to profitability. Costs are coming down, turnover is going up, production is going up, and efficiency is going up. You can also develop new goods or services or grow into new market segments.
Profitability affects a company's capacity to obtain bank funding, draw in investors to fund its operations, and expand its business, hence making a profit is crucial to a company's success. Without making a profit, companies cannot continue to operate.
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