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Finance

April 26, 2010
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Gross profit margin = Revenue – Costs (Fixed/Variable to produce)
—————————————-
Revenue

So if, I invest 300 rs. in my business and my gross margin is 50% so I need to earn 600 rs to break even.

600-300 = 1
———
300

Gross margin determines break even point and profitability.

Net revenue is total sales revenue minus minor returns, allowances etc.marketing expense, less other overheads, etc

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