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Incremental Revenue

Definition

The additional dollar sales generated as a direct result of a specific activity, such as a promotion, display, or marketing campaign, above the expected baseline. Incremental revenue reflects the absolute financial impact of that activity.

How It's Calculated

Observed sales dollars − Baseline sales dollars

Example

A beverage brand typically generates $100,000 in weekly sales. During a promotion, sales increase to $140,000, resulting in $40,000 in incremental revenue attributed to the promotion.

 

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