O'Reilly logo

Improving Profit: Using Contribution Metrics to Boost the Bottom Line by Keith N. Cleland

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

images

The Business Wheel

A wheel that operates around a well-maintained hub (Figure D-1), with spokes of even length and at even tension, is far more likely to perform in a balanced state than a wheel with uneven spokes under varying tension that put undue pressure on the hub.

9781430263074_AppD-01.jpg

Figure D-1. The Business Wheel with well-balanced spokes. TARI = Target Average Rate Index (Target Average Gross Profit Contribution per unit of Targeted Output Activity1). Contribution refers to gross profit (or added value) calculated as sales less cost of goods or materials ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required