Many of the questions we receive relate to eating and drinking, and how the hospice philosophy considers things like feeding tubes and hydration. Here are some of the most common questions and brief answers- if youâd like to discuss any of these issues in more detail, donât hesitate to give us a call or email us.
The gross margin represents the percent of total sales revenue that the company retains after incurring the direct costs associated with producing the goods and services sold by a company. A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage.
Gross Margin. Gross margin represents the percentage of net sales that the firm takes in as gross profit. It equals gross profit divided by net sales. If you have sold $500,000 worth of product, and the cost of goods sold is $300,000, the gross profit is $200,000. The gross margin is $200,000 divided by $500,000 which equals 40 percent. A business should not focus on gross margin exclusively, since you can increase gross margin but end up with less in gross profits. If your gross profits drop to $170,000 and sales decline to $400,000, gross margin would be higher, at 42.5 percent, yet gross profits would be $30,000 lower. Contribution Margin Contribution margin is a more relevant measure to assess the profitability of additional products sold, and only takes into account variable costs.