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Hi,
If a company has sold 850,000 volume in 2010, with gross margin 6 million. There is a yearly growth rate in volume of 3.5% and in cost inflation by 2%. Also 80% of cost of sales are variable costs. I am asked to find the expected gross margin for 2015.
I was trying to solve it, I got costs increasing by 4.8% (2% + (80%*3.5%)). But I couldn't get the gross margin. Is this information enough to calculate it ? I think the exact revenues and costs should be provided ?
Thank you in advance.
If a company has sold 850,000 volume in 2010, with gross margin 6 million. There is a yearly growth rate in volume of 3.5% and in cost inflation by 2%. Also 80% of cost of sales are variable costs. I am asked to find the expected gross margin for 2015.
I was trying to solve it, I got costs increasing by 4.8% (2% + (80%*3.5%)). But I couldn't get the gross margin. Is this information enough to calculate it ? I think the exact revenues and costs should be provided ?
Thank you in advance.