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Net PPM (Profit per Unit after Promotions)

Definition

Net profit earned per unit after accounting for trade discounts and promotional spend (Net Profit per Unit after Promotions, Net PPM)

How It's Calculated

(Net Sales – Trade Spend) ÷ Units Sold

Example

If Net Sales = $100K, Trade Spend = $20K, Units Sold = 10K → $8 Net PPM.

 

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