Mr Greifeld’s lack of basic accounting knowledge was exposed this year during a case in the New Jersey Superior Court. The Nasdaq chief filed a lawsuit against a company called Tours of Enchantment, which had organised a $600,000-plus reunion for his family at a luxurious castle in Ireland.
Mr Greifeld, meanwhile, claimed in his lawsuit that he understood the contract to be based on cost plus a mark-up of 38 per cent. If an item that costs $100 is marked up by 38 per cent, it becomes $138 on an invoice. If the same item is required to show a 38 per cent profit margin, it becomes $162, because gross profit margin is calculated by dividing profit by the selling price of an item.
Gratitude:KF Webs
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