THE SUSTAINABILITY OF ENTERPRISE DEVELOPMENT WHEN MANAGING MULTI-PRODUCT INNOVATIVE PRODUCTION

Abstract

Analyzing the sustainable development of innovative industries with the diversification of production for risky projects, this paper studies the possibilities and disadvantages of the traditional application of cost – volume – profit (CVP) analysis for assessing the implementation of multi-product production projects. The hypothesis is that the sustainable development of enterprises with multi-product production on the basis of the “corrective factors of formation” management model of the overall break-even point of the planned profit of the production with various characteristic initiating perturbations can be ensured by developing a matrix of potential solutions “one initiating factor to one corrective management factor”. The model can to take into account deviations of constant and variable factors in the formation of the final planned profit for multi-product production, including the difference of clock productivity and planned periods for the production of individual products and changes in factors. The methodical approach is illustrated by examples of analytical calculations and generalized graphical representations of changes in the variable and fixed costs of one product at the expense of a possible change in variable costs of another product, and by adjusting the fixed costs at the expense of a possible change in the fixed costs of another product. The approach is largely universal under other boundary conditions for the pairs of initiating-correcting influence to assess the sustainability of the development of mono- and multi-product production.