Chapter 8. Getting to Gross Profit
Breathe easily
Forecasting sales volumes
The big picture – the economy
Up close and personal – industry and product demand
Pulling it all together
Cost of sales
Gross profit
Writing it up
“The absolute fundamental aim is to make money out of satisfying customers.”
—Sir John Egan
The main objective of this chapter is getting to gross profit (sometimes known as the gross margin) – trading income from sales less directly attributable costs. These are the cost of sales such as the spending directly associated with producing your product – raw materials, components, production costs. If you have a simple product, sales costs might be no more complicated than so-many hours of a consultant's time or the buying price of a ...
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