Purpose
The purpose of margins is "to determine the value of incremental sales, and to guide pricing and promotion decision."
"Margin on sales represents a key factor behind many of the most fundamental business considerations, including budgets and forecasts. All managers should, and generally do, know their approximate business margins. Managers differ widely, however, in the assumptions they use in calculating margins and in the ways they analyze and communicate these important figures."
Read more about this topic: Gross Margin
Famous quotes containing the word purpose:
“As the purpose of comedy is to correct the vices of men, I see no reason why anyone should be exempt.”
—Molière [Jean Baptiste Poquelin] (1622–1673)
“The purpose of polite behavior is never virtuous. Deceit, surrender, and concealment: these are not virtues. The goal of the mannerly is comfort, per se.”
—June Jordan (b. 1939)
“I want that glib and oily art
To speak and purpose not, since what I well intend,
I’ll do’t before I speak.”
—William Shakespeare (1564–1616)