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

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Printing Business Multiplies Net Profit by 500%

Unable to see a connection between adding 25% profit to every job and ending up with 5%, the printer is instrumental in giving birth to TARI

“I don’t understand it at all: I put 25 percent profit on every job and never get more than 5 percent by the end of the year. What am I doing wrong?” asked the printer.

“I don’t know,” I replied, “but we can soon find out.” After 12 years as a professor of accounting and business studies, specializing in management accounting, I had yet to learn how to pinpoint the cause of such problems without extensive, time-consuming analysis. Nevertheless, I was confident ...

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