A METHOD OF CALCULATION OF DIRECT AND INDIRECT SALES REVENUE GROWTH AT AGROINDUSTRIAL ENTERPRISES

Анотація

Introduction. Calculation of economic efficiency for the purpose of increasing sales revenues at agroindustrial enterprises has its own specifics. Implementation of new organisational and economic initiatives leads not only to a direct economic impact, but likewise to a significant indirect effect as well. The analysis of scientific publications on this problem allowed to find out that the existing techniques of the analysis of influence of factors on financial results of activity of the enterprises of agro-industrial complex are characterized by the high level of adaptedness to conditions of practical economic activity and provide needs of financial managers at adoption of optimal management decisions. However the high level of production diversification of the enterprises of agro-industrial complex demands further improvement of the factorial analysis taking into account branch features of the enterprises of the agro-industrial sector.

Purpose of the research is to elaborate and to demonstrate – based on specific examples – a method of calculation of direct and indirect effect of marginal sales revenues at agroindustrial enterprises. The important question is due to what factors is the increase in profits from product sales.

Results. The specifics of calculations of economic efficiency of innovative developments at agroindustrial enterprises are provided. Furthermore, a method of calculating revenue per unit of production and in total across an enterprise, including those achieved due to output volume growth, a decrease in the cost of production and an increase in realised output prices, is presented. However, both in academic and practical production conditions the method of calculating the values and interrelations between a direct and an indirect effect are elaborated on insufficiently. It is quite obvious that the revenue per unit of output and total revenue realised across an enterprise tends to increase alongside an increase in the total sales volume respectively. However, hereby the following relationship is identified: marginal revenue due to a decrease in the cost of production typically exceeds marginal revenue due to an increase in sales revenues. This relationship is confirmed based on an example of an industrial enterprise.

Therefore was executed research of interrelation of direct and concomitant effect growth of volume of realization for what were executed calculations of gain of profit both due to growth of the sum of realization, and due to decrease in prime cost (at the invariance of prices for products).

Conclusions. The conducted research allowed to find out that the concomitant effect, that is profit mark-up due to decrease in product cost, exceeds a direct effect, received for the account of growth of volume of realization, is reached in case when coefficient of a ratio of concomitant effect to direct effect directly proportional the specific weight of constant expenses in structure of prime cost and inversely proportional coefficient of profitability of the sold products. The conducted research demonstrated that the efficiency of implementation of innovative developments at industrial enterprises which are directed towards an increase in sales volumes depend not only on marginal output volume, a decrease in the cost of production and an increase in sales prices, but also on an initial state of production expressed via a ratio of fixed costs to variable costs and a resulting level of production profitability accordingly. A higher economic effect if provided by an innovative development which – all else equal – is implemented on industrial enterprises which have a higher share of fixed costs in the total structure and a lower output profitability respectively.