Talk:Seed/@comment-3338534-20110112180801

The table on this page lists profit margin for each crop, which isn't important in FarmVille. However profit margin is indirectly a measure of GROSS MARGIN which is important in this game.

Profit margin shows how much money you put at risk by investing, which implies a possibility of the crop not being purchased, which is not simulated in FarmVille. Gross Margin is a measure of how profitable the crop is per invested dollar. Gross Margin shows how quickly you can grow your profit by re-investment.

Gross margin percentage = (revenue-cost of goods sold)/revenue

For example Wheat has a Gross Margin of 1.18, meaning you can use the profit from each Wheat plant to purchase 1.18 additional Wheat plants in the next cycle. Alternatively, each Wheat plant renders it's cost PLUS 1.18 of it's cost, meaning it slightly better than doubles the money you invested. Gross margin is like the interest rate at which crops accrue value.