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| Topic: |
Business
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| Number of pages / Number of words: |
14 / 3682 |
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Compare with Wendy?¦s, Starbucks uses the strategy that lowering the sales price normally increases unit volume. The result is the profit margins lower than Wendy?¦s.
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Gross margin: It indicates the profit a company earns after direct costs of production (Harrington, 2004). There are two kinds of data to be used for calculating gross margin...
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There are two kinds of data to be used for calculating gross margin. One is gross profit, and the other is net sales. Net sales of these two companies are from their annual income statements. I found the gross profit of Starbucks in the ?§smart money?? website. For Wendy?¦s gross profit, I calculate it; the gross margin or profit is simply revenues minus cost of goods sold (Harrington, 2004)...
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