Recall when to use gross margin, contribution margin, and operating margin.
Cost layers Gross margin vs contribution margin vs operating margin Ask which costs are included before acting on a margin number. Recall Which margin is best for approving a one-time discounted order? Contribution margin. The decision should include the revenue and variable or incremental costs caused by that order. Objection The order is high gross margin, so the discount is safe. A sales partner is using gross margin to justify a special concession. Your line Gross margin is helpful, but this decision needs contribution after discount, commission, support, and any rush cost. Do not debate "good margin" generically. It accepts…
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