Breakeven & Business

veritable elements of assembly line show that to achieve high advantageousness a better and diverse product assortment ordain result in more competency utilization. Therefore capacity utilization has a guide on relation to profitability and product mix. This is because if capacity is fully utilized will the profit be arrival to the maximum as fixed cost will remain the same.However if the profit is to be further change magnitude it is necessary to enhance the capacity as a result more capacity would need to be used to first cover the fixed costs of the new capacity installed. Similarly in oneness machine, a number of products can be make therefore not all products will be made to the fullest as one product or the other production will be scarified. What companies picture to achieve is the right product mix so that optimal profitability is achieved and therefore make the business more versatile.Though it is the decision of the person in blossom to decide either to fully utilize the capacity using the most profitable product or make a number of products to focus on product diversity rather than on profitability. (Source corporate trust Industries Limited, High Density polythene Pipes Beyond peeing Supply)References 1. Ms Poorvi C. Desai Polymers, Reliance Industries Limited, High Density Polyethylene Pipes Beyond Water Supply. Retrieved on October 5, 2008, from http//www. polymerupdate. com/poorvidesai/pdf/HDPE_Pipes. pdf