Tuesday, July 10, 2012 5:03:10 PM
I did my Correction to my Math it is Revenue to COGS = .1324
Revenue to Operating = .019
Because the revenue to COGS (causing Contributional margin to decrease) income (otherwise known as gross Margin) is increasing at a slower rate compared to operating expenses. Thus meaning there is very poor management.
Now compared to Gross margin the correlation is .0478 so we will be looking at .0478/.019 = 2.515 dollars spent increasing revenue 1 dollar.
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