Berry Ratio

  

Everyone knows the proper ratio of blueberries to raspberries is 1:1, while the proper ratio of blueberries to strawberries is 5:1.

Elsewhere, the Berry ratio involves comparing a firm's gross profit to its operating expenses. It's considered a useful way to measure profitability at certain types of companies, and has its widest application related to transfer pricing, or the pricing of transactions between units of large companies.

It was developed by economist Charles Berry during the 1970s, and was first used in a 1979 legal case involving transfer pricing at DuPont. A Berry ratio of at least 'one' indicates a profit. A result below 'one' indicates a loss.

Wait...Chuck Berry. Wasn't this also a thing from Back to the Future? Eh, maybe not.

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