Is it possible to have a negative incremental profit?

Asked 3 years ago

Hey all, I am wondering if anyone would be able to help me regarding my profitability. I used the calculations online to try and determine my incremental profit from Shopify but the number is negative. How is this possible? My total revenue is still positive overall. Thanks in advance.

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Abeeha Qasmi

Wednesday, January 18, 2023

Yes, it is possible to have a negative incremental profit. If the incremental profit is negative, your company's total profit falls. Moreover, it is possible to have a positive incremental profit if your incremental revenue surpasses the incremental cost. In this case, your total profit increases.

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