The MECE principle can be used to calculate company profits by breaking down the components of profit into mutually exclusive and collectively exhaustive categories. In this case, profit is calculated as Revenue minus Costs. Revenue can be further broken down into Units Sold and Price per Unit, and Costs into Fixed Costs and Variable Costs. Each of these components is mutually exclusive (they don't overlap) and collectively exhaustive (they cover all possible aspects of revenue and costs).
How can you make every idea count and have every problem efficiently solved? Our McKinsey MECE Princ...
Download template