Most time I get tips on profitability cases people tell me to go with revenues and costs as the two main branches, which makes perfect sence as these two really are the main drivers of profitability. But then under revenues they usually go with price * volume and costs divided into fixed and variable.
Wouldn't it make more sence to divide profits into profit/product (or customer) * number of products - Fixed costs, since that is the formula. Then divide profit / product into price and variable costs per product if you find out that this is the problem. Is there any reason why this would be worse or less effective/structured than the regular revenues and cost framework?