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Revenues Less: Variable cost Contribution Margin Less: Fixed Cost Net Income
If revenue is less than costs, the gross profit is negative -- it is not a profitable company.
Operating Margin is a measurement of what proportion of a company's revenue is left over, before taxes and other indirect costs are incurred, after paying for variable costs of production like wages, raw materials etc.A good operating margin is required for a company to be able to pay for its fixed costs like interest on its debt. A higher operating margin means that the company has less financial risk.Formula:Operating Margin = (Operating Income / Revenue)Operating income is the difference between operating revenues and operating expenses
Two main reasons: 1. There are greater profits to be gained by being a monopoly, either in the form of lower costs (economies of scale) or higher revenues (since all the industry demand is supplied by one company). 2. Less uncertainty. You don't have to worry about competition.
A company's earnings are equal to revenue less costs of production over a given period of time.
when price is less then average variable costs !
It is when revenues are less than expenses.
They do this in Mexico. No "one" company makes them. It is more so a trade taken up by local people.
Mine costs $146, but that's what my insurance company pays so it might be less if you're self-paying.
Despite the fact that some firms are very large, 53 percent have fewer than five employees and report revenues of $50 million or less. The industry reported 325,900 employees in 1998.
An electric power company charges less for electricity used during off-peak hours when production costs are lower.
Because it costs money to clean it and make it suitable for use again. The less water we waste - the less it costs to recycle it !