Incremental Revenue

Incremental Revenue

Represents the additional profit generated by a business as a result of increased sales volume.

It quantifies the extra income gained from specific products, investments, or direct sales resulting from marketing campaigns that drive sales growth. When compared against the incremental cost of products, incremental revenue ensures profitability by surpassing associated costs. As it focuses solely on revenue gains without considering overhead expenses, businesses utilize incremental revenue to evaluate overall profit margins and assess the effectiveness of sales and marketing initiatives in driving financial growth.

Related Terms

Hyper Market

A large retail store that integrates both a department store and a grocery supermarket within a

Excess Inventory

Also referred to as surplus inventory, denotes the surplus stock held by a company beyond what