Revenues

Number of units sold x Average price.

Cost of goods sold (COGS)

Number of units sold x Unit production cost. The production cost depends on the characteristics of your product as well as of the levels of services and distribution offered by your company.

Gross contribution

= Revenues – COGS

Marketing expenditures

The investments made in specific communications actions aimed at building or increasing your brand awareness in the targeted customer segments. Marketing includes mainly media advertising (TV, billboards, Internet, press etc.).

Geographical expansion (sales force)

The total cost of your sales force, including salaries and other benefits. These expenditures depend on your geographical expansion.

Contribution after Marketing

= Gross contribution – Marketing and sales force expenditures.

Development (Product/Services/Delivery)

The investments made in Research & Development for the previous year.

Other costs (G&A & Corporate projects)

This includes the general & administrative costs as well the costs of the Corporate Projects launched during the past years. G&A costs are calculated as a percentage of your revenues.

EBIT

= Contribution after marketing – R&D – Other costs