How could you, as engineers, positively impact EBIT?
Answer: EBIT refers to “Earnings Before Interest and Taxes “. In order to increase EBIT, Fixed costs can be reduced to an extent. The fixed costs in an organization generally relate to costs like factory rent, machine purchase or design cost etc.
As an engineer, I can help reduce the costs associated with the purchase or manufacture of machine or equipment by suggesting models or designs involving less cost (without compromising quality).
This would lead to an increase in EBIT as there is a reduction in costs.
This is an example of how an engineer can positively impact EBIT.
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