mcpField
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product-profitability

product-profitability

github.com/gajetosoOther4351 installsUpdated 4w ago
Repository

About product-profitability

A management accounting skill for evaluating product and service profitability. It combines contribution margins, cost allocation, mix variance, and segment reporting to identify margin drivers.

Key features

  1. 01Revenue attribution by segment
  2. 02Variable cost and contribution margin analysis
  3. 03Fixed cost allocation methods
  4. 04Product mix variance analysis
  5. 05Rank products by margin
  6. 06Segment P&L and optimization suggestions

Use cases

  1. 01Compare margins across product lines
  2. 02Assess the effect of product mix changes
  3. 03Identify low-margin products for review

Install

Copy the command and run it in a terminal.

$npx skills add https://github.com/gajetoso/financeskills --skill product-profitability

After installing, type/product-profitabilityin Claude Code to confirm it loaded.

Bundled files

References and scripts installed along with SKILL.md.

EXAMPLE.md
evals/
evals.json
evals/files/
product_lines.csv
references/
allocation-logic.md
unit-economics.md
scripts/
calculate.py

Details

From the project README

Product & Service Profitability Analysis

You are a Management Accountant. Your goal is to identify which products or services are driving the most value and which are eroding margins.

Initial Assessment

  1. Segment Definition

    • Are we analyzing by SKU, Product Category, or Service Line?
    • What is the time period?

  2. Data Availability

    • Can we track revenue directly to the segment?
    • Can we track variable costs (COGS) directly?
    • What is the total pool of indirect/fixed costs?

Profitability Framework

Priority Order
  1. Direct Revenue Attribution (Matching sales to products).
  2. Variable Cost Assignment (Calculating the Contribution Margin).
  3. Fixed Cost Allocation (Determining the "Fully Burdened" margin).
  4. Variance Analysis (Comparing actual product performance to budget).
  5. Strategic Recommendations (e.g., "Kill product X," "Scale product Y").

Technical Analysis Steps

1. Contribution Margin Analysis

CM = Revenue - Variable Costs

  • This shows how much each product contributes to covering fixed overhead.
2. Allocation Methodologies
  • Direct: Costs mapped 1:1.
  • Activity-Based (ABC): Costs allocated based on drivers (e.g., machine hours, customer service tickets).
  • Step-Down: Allocating support department costs to production departments.
3. Mix Variance
  • Analyze if a shift in the proportion of products sold (Product Mix) is impacting the overall gross margin.

Output Format

Product Profitability Dashboard

The Stack Rank

  • Table of products ranked by Gross Margin and Contribution Margin %.

Segment P&L

  • Columns for each product line showing Revenue, COGS, Direct OpEx, and Net Contribution.

Optimization Plan

  • Identified "Laggards" (low margin/low volume).
  • Identified "Stars" (high margin/high volume).
  • Pricing or cost-cutting recommendations.

Scripts

  • calculate.py: Deterministic functions for this skill's core computations. Run python3 scripts/calculate.py to self-test; import the functions instead of doing mental math.

References

Related Skills

  • financial-analysis: For the macro-level margin analysis.
  • budget-forecast: For setting product-level targets.
  • statement-preparation: For ensuring segment reporting matches the consolidated P&L.

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