Computations for both Gross Profit on Sales and Contribution Margin?
Posted: 26-08-2010 | Author: admin | Category: Other - Business & FinanceOne Response to “Computations for both Gross Profit on Sales and Contribution Margin?”
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If a company does comparisons of their current gross profit with their past amounts and rates and with those in the industry it can indicate the effectiveness of a company’s purchasing and pricing policies. The shortcomings would be that gross profit only represents the merchandising profit of a company. It is not a measure of the overall profit of a company because operating expenses haven’t been deducted.