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:
“Some of my friends spoke as if I was coming to the woods on purpose to freeze myself.”
—Henry David Thoreau (1817–1862)
“Civilization is a process in the service of Eros, whose purpose is to combine single human individuals, and after that families, then races, peoples and nations, into one great unity, the unity of mankind. Why this has to happen, we do not know; the work of Eros is precisely this.”
—Sigmund Freud (1856–1939)
“And the purpose of the many stops and starts will be made clear:
Backing into the old affair of not wanting to grow
Into the night, which becomes a house, a parting of the ways
Taking us far into sleep. A dumb love.”
—John Ashbery (b. 1927)