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D-gross-margin Dictionary

Gross margin

Income from an enterprise minus its variable costs

All termsIntroduced in Module 3Open the Toolkit
An open dictionary on a farm office desk
Plain meaning
Income from an enterprise minus its variable costs
How to use it
Calculate gross margin as income minus variable costs for each enterprise. It is the number used to compare enterprises on the same land.
South African benchmark
South African enterprise budgets compare enterprises on gross margin per hectare or per unit.
Country notes
Applies the same way in all five markets.
Go and read
M1-U6
Calculate it
T-M1-01 Enterprise Budget
Library sources
LIB-A014, LIB-A015
See also
Enterprise budget, Break-even yield
Income bar split into variable costs and gross marginGross marginIncome from the enterpriseVariable costsGross marginIncome minus the costs that rise and fall with production. Fixed costs come after.
Gross margin, shown as a diagram.

Introduced in C3 Productivity Economics.