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