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:
“The chief want, in every State that I have been into, was a high and earnest purpose in its inhabitants. This alone draws out “the great resources” of Nature, and at last taxes her beyond her resources; for man naturally dies out of her.”
—Henry David Thoreau (1817–1862)
“the Omnibus
Had no real purpose till it got to us.
Never believe it.”
—Robert Frost (1874–1963)
“The purpose of getting power is to be able to give it away.”
—Aneurin Bevan (1897–1960)