Distributor Margin Calculator

Formula

The formula to calculate the Distributor Margin (DIM) is:

\[ \text{DIM} = \left( \frac{\text{DR} - \text{DC}}{\text{DR}} \right) \times 100 \]

Where:

$ \text{DIM} $ is the distributor margin (%)
$ \text{DR} $ is the distributor revenue ($)
$ \text{DC} $ is the distributor cost ($)

What is Distributor Margin?

Distributor Margin (DIM) is a financial metric that indicates the percentage of revenue that exceeds the costs incurred by a distributor. It represents the profitability of the distributor's operations. A higher distributor margin indicates better profitability and efficiency in managing costs relative to revenue.

Example Calculation

Let's assume the following values:

Distributor Revenue (DR) = $10,000
Distributor Cost (DC) = $7,500

Using the formula to calculate the Distributor Margin:

\[ \text{DIM} = \left( \frac{10000 - 7500}{10000} \right) \times 100 = \left( \frac{2500}{10000} \right) \times 100 = 25\% \]

The Distributor Margin is 25%.

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