Verified Expert

Every company that runs a business, runs it with a motive to earn profits. Hence it is important to know the level of activities , its total cost and possible revenue from those activities, so that the profit earned can be found out. The present problem is one such example where one can find the profitability of the business and how it can be maximized. At the same time such a study can help the company to find alternative ways to avoid losses and bring it into profit making one by restructuring its activities.