The formula for calculating company profits aligns with the MECE principle as it breaks down the components of profit into mutually exclusive and collectively exhaustive categories. Profits are calculated as Revenue minus Costs. Revenue is 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, meaning they do not overlap, and collectively exhaustive, meaning they cover all possible scenarios.
How can you make every idea count and have every problem efficiently solved? Our McKinsey MECE Princ...
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