Math Flashcards
1
Q
ROI=
A
ROI== (Gain from Investment - Cost of Investment)/(Cost of Investment)
2
Q
Contribution Margin=
A
Contribution Margin= Sales rev- varibale cost
determine the profitability of individual products by measuring how sales affect profits
3
Q
Profit Margin=
A
Profit Margin= Profit/ Sales revenue
4
Q
Gross Margin %=
A
Gross Margin %= (Revenues- COGS)/Revenues
The higher the percentage, the more the company retains on each dollar of sales, to service its other costs and debt obligations.