Variable, Not Fixed Costs
In this article, you’ll learn: How to calculate a break-even demand per catalog using variable costs.
* operations costs reflects the remaining costs, and includes the cost to fulfill an order; cost for the phone call; costs to pick, pack and ship orders; and any other customer service or variable administrative expenses incurred with each incremental order.
You must then subtract your operations cost from the gross merchandise margin to get a combined margin, the gross merchandise/operations margin, as they’re both represented as a percentage of net sales.
- Companies:
- Michael Grant Direct
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