Abstract
The article is based on the idea of forming a conceptual framework for managing the profitability of investment projects, which is mainly based on the comparability of fixed and variable costs, both as a whole on production and per unit of output. Applying the criterion of break-even point of enterprises, a conceptual vision of determining the optimal volume of production is given. The article focuses on a careful analysis of investment projects for small and medium enterprises, due to their natural inability to incur losses over a long period of time in contrast to large business entities. The article provides mathematical tools for determining the total cost of production and a parametric equation of conditions for the impact of output (work or services) on the company's profits. Based on this, it is proved that the break-even analysis of projects using absolute values and its graphical interpretation complicate the practical implementation of the search for rational values of project implementation parameters in repeated studies of alternatives. Therefore, it is noted that the critical volume of production in this case is a function of two variables, which makes it possible to obtain a graphical solution to determine the optimal volume of production, which corresponds to the break-even point in the form of appropriate fixed parameters. Based on the research, it is concluded that the considered schedules can be used to make management decisions to ensure break-even output under the conditions of various project options, in determining the allowable values of fixed costs and variable costs per unit of output. The proposed graphical model is simple and clear, it can be used to determine a rational decision without costly calculations, which increases the efficiency of management decisions. In addition, the developed model can be used to compare the effectiveness of investment projects. On the basis of the developed model the graphic interpretation of estimation in relative units of levels of break-even production and profit and a stock of financial durability of JSC Udarnik depending on volumes of production of the pneumatic tool, the price of its realization, constant and variable expenses is carried out.
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