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

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Horticultural Equipment Proprietor’s Moment of Truth

Struggling to repay the bank, the proprietor blamed himself for going into debt against his better instincts. However, the debt was not the cause of his problem at all.

“I borrowed from the bank to buy a steel guillotine to save me having to take the steel across town every time I wanted to get it cut. And now I can’t make the payments.”1 Max was a man who hated the thought of borrowing because of the very problem he now found himself facing. The specter of potential disaster loomed large on his horizon.

He was making a variety of horticultural machines for polishing and packing fruit. The ...

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