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Approach to increasing margin calculation

gross profit margin profitability

Most recent answer on Jul 06, 2022

Moritz

Expert

ex-McKinsey EM & Interviewer | 7/8 offer rate for 4+ sessions | 90min sessions with FREE exercises & videos

Moritz

Expert

gave the best answer on Jul 05, 2022

ex-McKinsey EM & Interviewer | 7/8 offer rate for 4+ sessions | 90min sessions with FREE exercises & videos

The answer is ~91.8%, corresponding to ~1.8% margin increase. Please consider the following, where r is revenue, c is cost, and x is the new margin: Current: (r - c) / r = 90% → (100 - 10) / 100 = 90% Proposed: (r*1.1 - ... (read entire answer)

3
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853
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13
Total Upvotes

on Jul 06, 2022 on Jul 06, 2022
Last Activity

When sales growth reduces EBITDA?

EBIT gross profit margin growth growth analysis operating margin

Question edited on Apr 10, 2021

gave the best answer on Apr 10, 2021

Hi Roberto, There are probably 3 main areas that could be influencing this. 1) Cost increases that directly led to this sales growth (i.e. new factories, increased sales team, larger marketing bucket etc.) 2) Pric ... (read entire answer)

2
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842
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29
Total Upvotes

on Apr 10, 2021 on Apr 10, 2021
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Is the assumption "The gross margin will remain the same since the industry structure did not change" common practice?

Gravestone Inc. gross profit margin industry

Most recent answer on Dec 23, 2019

Luca

Expert

BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Luca

Expert

gave the best answer on Dec 23, 2019

BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Hello Luca, I completely agree with you, the solution proposed is at least questionable.The hypothesis is basically that the price war following the adoption of the new technology will result in setting the price to h ... (read entire answer)

1
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2.2 k
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1
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on Dec 23, 2019 on Dec 23, 2019
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