|
If you want to tell at a glance what effect a change in your gross margin will have on sales volume, you can use the reckoner below.
Look in the column closest to your present gross profit percentage, and along the row corresponding to your projected margin increase or decrease, and where the two meet will tell you the percentage by which your sales must change to have the same gross margin.
|
Existing Gross Profit Percentage
|
|
|
|
20
|
30
|
45
|
50
|
60
|
70
|
80
|
|
Sales can
decline by as much as:
|
|
Percentage
|
+5
|
-20%
|
-14%
|
-10%
|
-9%
|
-8%
|
-7%
|
-6%
|
|
Margin
|
+10
|
-33%
|
-25%
|
-18%
|
-17%
|
-14%
|
-13%
|
-11%
|
|
Increase
|
+15
|
-43%
|
-33%
|
-25%
|
-23%
|
-20%
|
-18%
|
-16%
|
|
|
+20
|
-50%
|
-40%
|
-31%
|
-29%
|
-25%
|
-22%
|
-20%
|
|
Sales can increase by as much as:
|
|
Percentage
|
-5
|
33%
|
20%
|
13%
|
11%
|
9%
|
8%
|
7%
|
|
Margin
|
-10
|
100%
|
50%
|
29%
|
25%
|
20%
|
17%
|
14%
|
|
Decrease
|
-15
|
300%
|
100%
|
50%
|
43%
|
33%
|
27%
|
23%
|
|
|
-20
|
N/A
|
200%
|
80%
|
67%
|
50%
|
40%
|
33%
|
|
Other
pages in this section
Financial
Calculators
|
Profit Plus
|
Quick Tips
|
Dates for your Diary
|
External Links
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