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Reducing economic risk by improving production

10.15660/AUOFMTE.2022-2.3654

Carmen Elena Stoenoiu

Carmen.Stoenoiu@emd.utcluj.ro

Volume XXXI, 2022/2

It was found that it can be reduced in both situations due to the existence of several production options, that economic risk is directly related to operating profit when the change is made only by increasing the quantity of the first product and decreasing to the second product. In the case of refurbishment, the connection is reversed, respectively, when the operating profit decreases, the coefficient of the operational leverage increases. The 25% increase in sales revenues produces more favourable effects in the case of refurbishment.

reducing economy risk

ISSN 1583-0691, CNCSIS "Clasa B+"