We will start with this disclaimer one more time. The Lowest Cost Producer has nothing to do with price. It is all about costs and price is what the customer will pay and how much margin you will keep.

Another way of looking at this regardless of the economy, if you want a profitable and long term future - being the LWP is a significant element in making that goal a reality.

Topics: Impact of OPS on your Financial Performance Analyze the Cost of Production Variable Costs - what you sell Fixed Costs - support of what you sell Total Cost - Variable + Fixed Marginal Cost - producing 1 more Average Cost - Total Cost / Units produced or Hours used