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 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)
“The strongest wind cannot stagger a Spirit; it is a Spirit’s breath. A just man’s purpose cannot be split on any Grampus or material rock, but itself will split rocks till it succeeds.”
—Henry David Thoreau (1817–1862)
“To every thing there is a season, and a time to every purpose under the heaven:
A time to be born, and a time to die; a time to plant, and a time to pluck up that which is planted;”
—Bible: Hebrew Ecclesiastes (l. III, 1–2)