Differential Revenue
What is Differential Revenue?
Differential revenue is the difference in potential revenue generated between two courses of action.
How it Works
A company may be evaluating whether it should invest money to increase the development of an existing product line.
Or if it should invest money in a new product line, altogether.
Projected sales for each product will differ.
This difference is known as differential revenue.
© R.J. Hickman 2020