October 2013
Intermediate to advanced
227 pages
5h 8m
English
Content preview from Improving Profit: Using Contribution Metrics to Boost the Bottom Line
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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.
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 ...
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