Most marketing texts omit the mathematics of marketing, however important it is in many decisions for this field. Calculating sales, costs, and certain ratios allow the marketing strategist to take wise action. In this book we describe five main areas of marketing mathematics: the income statement, analytical ratios, markup and markup, mathematics in marketing research, sampling, and the breakeven point.
The Financial Statements in the Company
As we saw in chapter I, the main financial statements that companies use are two: the income statement and the balance sheet.
The balance sheet shows the assets, liabilities and equity of a company at any given time. Measure the wealth of the company.
The income statement (also called the income statement or income statement) is the primary of the two statements for obtaining marketing information. It shows the company's sales, cost of goods sold, and expenses during the given period of time. It reflects the economic activity of a company at a certain time. By comparing the income statement from one period to another, the firm can detect positive or negative trends and take the most pertinent actions.
