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:
“If God bestowed immortality on every man then when he made him, and he made many to whom he never purposed to give his saving grace, what did his Lordship think that God gave any man immortality with purpose only to make him capable of immortal torments? It is a hard saying, and I think cannot piously be believed. I am sure it can never be proved by the canonical Scripture.”
—Thomas Hobbes (1579–1688)
“The purpose of a work of fiction is to appeal to the lingering after-effects in the reader’s mind as differing from, say, the purpose of oratory or philosophy which respectively leave people in a fighting or thoughtful mood.”
—F. Scott Fitzgerald (1896–1940)
“What if we fail to stop the erosion of cities by automobiles?... In that case America will hardly need to ponder a mystery that has troubled men for millennia: What is the purpose of life? For us, the answer will be clear, established and for all practical purposes indisputable: The purpose of life is to produce and consume automobiles.”
—Jane Jacobs (b. 1916)