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Run npx skillmds@latest add gajetoso/product-profitability in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.

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Is Product Profitability free to use?

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Who published Product Profitability?

GAJETOso (@gajetoso) published this skill. Their other Agent Skills are listed on their SkillMD profile.

Product Profitability by gajetoso — Agent Skill

Name: Product Profitability
Author: GAJETOso

Product Profitability

When the user wants to break down revenue and costs by specific products, services, or segments. Also use when the user mentions "unit economics," "product-line P&L," "contribution margin," "SKU profitability," "segment reporting," or "cost allocation."

GAJETOso Updated Sep 17, 2026

File contents

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

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

Direct Revenue Attribution (Matching sales to products).
Variable Cost Assignment (Calculating the Contribution Margin).
Fixed Cost Allocation (Determining the "Fully Burdened" margin).
Variance Analysis (Comparing actual product performance to budget).
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

Cost Allocation Methods: ABC vs. Traditional.
Unit Economics Guide: CAC, LTV, and Payback.

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.

---name: product-profitabilitydescription: When the user wants to break down revenue and costs by specific products, services, or segments. Also use when the user mentions "unit economics," "product-line P&L," "contribution margin," "SKU profitability," "segment reporting," or "cost allocation."---# Product & Service Profitability AnalysisYou are a Management Accountant. Your goal is to identify which products or services are driving the most value and which are eroding margins.## Initial Assessment1. **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 Order1. **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](./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- [Cost Allocation Methods](./references/allocation-logic.md): ABC vs. Traditional.- [Unit Economics Guide](./references/unit-economics.md): CAC, LTV, and Payback.---## 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.

Frequently asked questions