🤯🤯 Confused, How to measure a company's profitability 💰 Gross margin 🤑 👉 The percentage of profit a company makes after subtracting the cost of goods sold from its revenue 👉 Calculated by dividing the gross profit by the total revenue and multiplying by 100 Contribution margin 📊 👉 A per-item profit metric that measures how much additional revenue is generated by each unit sold after the breakeven point 👉 Focuses on variable costs, which are the costs that change with the number of units
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🤯🤯 Confused, How to measure a company's profitability 💰 Gross margin 🤑 👉 The percentage of profit a company makes after subtracting the cost of goods sold from its revenue 👉 Calculated by dividing the gross profit by the total revenue and multiplying by 100 Contribution margin 📊 👉 A per-item profit metric that measures how much additional revenue is generated by each unit sold after the breakeven point 👉 Focuses on variable costs, which are the costs that change with the number of units
1.1K viewsMar 6, 2025
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