Business · Markets · StrategySupport
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S&P 5006,412.08+0.62%
NASDAQ21,884.30+1.04%
DOW44,910.55-0.18%
10-YR4.13%-0.03
BRENT$71.44+0.91%
BTC$96,120-2.11%
← CII Learn · Business Fundamentals

How Businesses Make Money

Fundamentals of Corporate Revenue & Margin

A growing company can sell more and still earn less. Learn to explain why. This beginner course follows a fictional manufacturer from its first sale through revenue, production costs, operating expenses, pricing decisions and cash collection. You will calculate margins, compare growth strategies and write a short business diagnosis. Finish by advising the company on a proposed discount campaign.

What you will learn

  • Describe who pays a business and what they receive.
  • Calculate revenue from price and volume in a simplified example.
  • Distinguish revenue, gross profit and operating profit.
  • Calculate gross and operating margins and explain changes in percentage points.
  • Evaluate a discount using contribution and break-even volume.
  • Explain why profitable sales can still create a cash shortage.
  • Support a business decision with calculations, assumptions and a missing-information question.

Syllabus

  1. 1Follow the customer’s money8 min
  2. 2From revenue to gross profit9 min
  3. 3What remains after running the business?9 min
  4. 4Price, volume and the discount trap10 min
  5. 5Why growth can use up cash9 min
  6. 6Diagnose a business in five questions10 min
  7. CBusiness case: Northstar’s growth decision15 min