How-to-calculate-a-global-margin

How to Calculate a Global Margin | 9 Exercises

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Application: Anna's Cheeses

States :

Anna's Cheese is a small artisanal cheese shop specializing in the production of high-quality goat cheese. Anna would like to analyze the profitability of her products by calculating the overall margin obtained from the sale of several varieties of cheese. She produced and sold different cheeses during the last month at specific prices and costs. Here is the data:

  • Cheese A: Selling price excluding tax of €8 per unit, purchase cost excluding tax of €5 per unit, 200 units sold.
  • Cheese B: Selling price excluding tax of €12 per unit, purchase cost excluding tax of €7 per unit, 150 units sold.
  • Cheese C: Selling price excluding tax of €15 per unit, purchase cost excluding tax of €10 per unit, 100 units sold.

Work to do :

  1. Calculate the unit margin for each variety of cheese.
  2. Determine the overall margin for each type of cheese sold.
  3. Calculate the margin rate for each variety of cheese.
  4. Anna is hesitant to increase her selling price of cheese B to €14 per unit. Analyze the impact on the unit margin and on the overall margin.
  5. Evaluate, based on your analysis, whether an increase in the price of cheese B is a relevant strategic decision for Anna.

Proposed correction:

  1. Calculate the unit margin for each variety of cheese.

    The unit margin is calculated by subtracting the pre-tax purchase cost from the pre-tax selling price for each unit.
    For Cheese A: €8 – €5 = €3

    For Cheese B: €12 – €7 = €5

    For Cheese C: €15 – €10 = €5

    Thus, the unit margins are €3, €5, and €5 respectively for cheeses A, B, and C.

  2. Determine the overall margin for each type of cheese sold.

    The overall margin is calculated by multiplying the unit margin by the quantity sold.
    For Cheese A: €3 x 200 = €600

    For Cheese B: €5 x 150 = €750

    For Cheese C: €5 x 100 = €500

    The overall margins are therefore €600, €750, and €500 for cheeses A, B, and C.

  3. Calculate the margin rate for each variety of cheese.

The margin rate is calculated as follows: ((PV HT – PA HT) ÷ PA HT) x 100.
Margin rate for Cheese A: ((8 – 5) ÷ 5) x 100 = 60%

Margin rate for Cheese B: ((12 – 7) ÷ 7) x 100 = 71,43%

Margin rate for Cheese C: ((15 – 10) ÷ 10) x 100 = 50%

The margin rates are therefore 60%, 71,43%, and 50% for cheeses A, B, and C.

  1. Analyze the impact of an increase in the selling price of cheese B to €14 per unit.

    If the selling price of Cheese B increases to €14, then the new unit margin will be: €14 – €7 = €7.
    The new overall margin would be €7 x 150 = €1.

    The increase in the selling price results in an increase in the unit margin and an increase in the overall margin to €1.

  2. Evaluate whether the increase in the price of cheese B is relevant.

    Increasing the price of Cheese B to €14 improves the unit and overall margin. This would increase the profitability of the product. However, Anna must ensure that this increase does not affect demand, thus justifying the decision in a competitive context.

Formulas Used:

Title Formulas
Unit margin PV HT – PA HT
Overall margin Unit margin x Quantity sold
Margin rate ((PV HT – PA HT) ÷ PA HT) x 100

Application: ElectroniTech

States :

ElectroniTech is a company specializing in the sale of consumer electronics. To better understand the performance of the different products, the financial manager wants to establish the margins obtained from each model of device. Here is the data from the last quarter:

  • Model X201: Selling price excluding tax of €300 per unit, purchase cost excluding tax of €220 per unit, sold in quantities of 500 units.
  • Model Y401: Selling price excluding tax of €450 per unit, purchase cost excluding tax of €320 per unit, sold in quantities of 300 units.
  • Model Z501: Selling price excluding VAT of €600 per unit, purchase cost excluding VAT of €450 per unit, sold in quantities of 150 units.

Work to do :

  1. Calculate the unit margin for each device model.
  2. Determine the overall margin for each device sold.
  3. Calculate the markup rate for each model.
  4. Estimate the impact on the margin if the purchase cost of the X201 model drops by €20.
  5. Consider a 10% sale price reduction on the Y401 model. Analyze the implications.

Proposed correction:

  1. Calculate the unit margin for each device model.

    The unit margin is calculated by subtracting the pre-tax purchase cost from the pre-tax selling price.
    For the X201 Model: €300 – €220 = €80

    For Model Y401: €450 – €320 = €130

    For the Z501 Model: €600 – €450 = €150

    The unit margins are €80, €130, and €150 respectively for the X201, Y401, and Z501 models.

  2. Determine the overall margin for each device sold.

    The overall margin is calculated by multiplying the unit margin by the quantity sold.
    For the X201 Model: €80 x 500 = €40

    For Model Y401: €130 x 300 = €39

    For the Z501 Model: €150 x 150 = €22

    The overall margins are therefore €40, €000, and €39 for the X000, Y22, and Z500 models.

  3. Calculate the markup rate for each model.

The markup rate is calculated as follows: ((PV HT – PA HT) ÷ PV HT) x 100.
Markup rate for Model X201: ((300 – 220) ÷ 300) x 100 = 26,67%

Markup rate for Model Y401: ((450 – 320) ÷ 450) x 100 = 28,89%

Markup rate for Model Z501: ((600 – 450) ÷ 600) x 100 = 25%

The markup rates are 26,67%, 28,89%, and 25% for the X201, Y401, and Z501 models.

  1. Estimate the impact on the margin if the purchase cost of the X201 model drops by €20.

    New purchase cost for the X201 Model: €220 – €20 = €200

    New unit margin: €300 – €200 = €100

    New overall margin: €100 x €500 = €50

    The decrease in the purchase cost increases the unit margin by €20 and the overall margin to €50.

  2. Consider a 10% sale price reduction on the Y401 model. Analyze the implications.

    New sale price for Y401: €450 x (1 – 0,10) = €405

    New unit margin: €405 – €320 = €85

    New overall margin: €85 x €300 = €25

    A 10% reduction in the selling price reduces the unit margin and the overall margin. The decision must be justified by an increased volume of sales compensating for this decrease in margin.

Formulas Used:

Title Formulas
Unit margin PV HT – PA HT
Overall margin Unit margin x Quantity sold
Brand taxes ((PV HT – PA HT) ÷ PV HT) x 100

Application: Gourmet Bakery

States :

Boulangerie Gourmet offers various high-end bakery and pastry products. The owner wants to evaluate the profitability of the following product lines:

  • Organic bread: Selling price excluding tax of €2,50 per unit, purchase cost excluding tax of €1,50 per unit, sold in quantities of 1 units.
  • Butter croissants: Selling price excluding tax of €1,80 per unit, purchase cost excluding tax of €1 per unit, sold in quantities of 800 units.
  • Artisan cakes: Selling price excluding tax of €20 per unit, purchase cost excluding tax of €12 per unit, sold in packs of 200 units.

Work to do :

  1. Calculate the unit margin for each bakery product.
  2. Determine the overall margin achieved for each product.
  3. Calculate the margin rate for these products.
  4. Evaluate the benefits if the cost of purchasing organic bread decreases by 10%.
  5. Propose a strategy to increase the brand rate of artisanal cakes.

Proposed correction:

  1. Calculate the unit margin for each bakery product.

    Unit margin is calculated as follows: PV HT – PA HT.
    For organic bread: €2,50 – €1,50 = €1

    For Croissants: €1,80 – €1 = €0,80

    For Cakes: €20 – €12 = €8

    The unit margins are therefore €1, €0,80, and €8.

  2. Determine the overall margin achieved for each product.

    Calculation of overall margin: Unit margin x Quantity sold.
    For organic bread: €1 x 1 = €000

    For Croissants: €0,80 x 800 = €640

    For Cakes: €8 x 200 = €1

    The overall margins are respectively €1, €000, and €640.

  3. Calculate the margin rate for these products.

Margin rate formula: ((PV HT – PA HT) ÷ PA HT) x 100.
Margin rate for organic bread: ((2,50 – 1,50) ÷ 1,50) x 100 = 66,67%

Margin rate for Croissants: ((1,80 – 1) ÷ 1) x 100 = 80%

Margin rate for Cakes: ((20 – 12) ÷ 12) x 100 = 66,67%

The respective margin rates are 66,67%, 80%, and 66,67%.

  1. Evaluate the benefits if the cost of purchasing organic bread decreases by 10%.

    New purchase cost for organic bread: €1,50 x (1 – 0,10) = €1,35

    New unit margin: €2,50 – €1,35 = €1,15

    New overall margin: €1,15 x 1 = €000

    The reduction in the purchase cost would result in an increase in the unit margin and an increased overall margin of €1.

  2. Propose a strategy to increase the brand rate of artisanal cakes.

    To increase the brand rate, it is possible to increase the selling price while adding value to the product, or to reduce the associated costs. For example, switching to equally high-quality but less expensive ingredients, or improving the brand image to justify a higher price in the eyes of consumers.

Formulas Used:

Title Formulas
Unit margin PV HT – PA HT
Overall margin Unit margin x Quantity sold
Margin rate ((PV HT – PA HT) ÷ PA HT) x 100

Application: Chic Clothing

States :

Vêtements Chic is a high-end clothing store chain that wants to do an analysis of its margins on some popular items. The data for the past month is as follows:

  • Blazer: Selling price excluding tax of €90 per unit, purchase cost excluding tax of €60 per unit, sold in quantities of 300 units.
  • Dress: Selling price excluding tax of €150 per unit, purchase cost excluding tax of €90 per unit, sold in quantities of 200 units.
  • Trousers: Selling price excluding tax of €50 per unit, purchase cost excluding tax of €30 per unit, sold in quantities of 500 units.

Work to do :

  1. Calculate the unit margin for each item of clothing.
  2. Determine the overall margin for each type of item sold.
  3. Calculate the margin rate for each of these products.
  4. Analyze the potential impact on margin if the selling price of the pants is reduced by €5.
  5. Discuss a possible strategic decision to increase the dress's profit margin.

Proposed correction:

  1. Calculate the unit margin for each item of clothing.

    The unit margin is calculated as follows: PV HT – PA HT.
    For the blazer: €90 – €60 = €30

    For the dress: €150 – €90 = €60

    For the pants: €50 – €30 = €20

    The unit margins are €30, €60, and €20.

  2. Determine the overall margin for each type of item sold.

    Calculation of overall margin: Unit margin x Quantity sold.
    For Blazer: €30 x 300 = €9

    For Dress: €60 x 200 = €12

    For Pants: €20 x 500 = €10

    The overall margins are €9, €000, and €12.

  3. Calculate the margin rate for each of these products.

Formula for the margin rate: ((PV HT – PA HT) ÷ PA HT) x 100.
Blazer Margin Rate: ((90 – 60) ÷ 60) x 100 = 50%

Dress Margin Rate: ((150 – 90) ÷ 90) x 100 = 66,67%

Trousers Margin Rate: ((50 – 30) ÷ 30) x 100 = 66,67%

The margin rates are 50%, 66,67% and 66,67%.

  1. Analyze the potential impact on margin if the selling price of the pants is reduced by €5.

    New sale price for the pants: €50 – €5 = €45

    New unit margin: €45 – €30 = €15

    New overall margin: €15 x €500 = €7

    The €5 reduction would result in a decrease in the unit margin and an overall margin reduced to €7.

  2. Discuss a possible strategic decision to increase the dress's profit margin.

    To improve the dress's margin rate, the store can increase the selling price by improving perceived value through marketing or a strong brand, or reduce purchasing costs by optimizing sourcing or production.

Formulas Used:

Title Formulas
Unit margin PV HT – PA HT
Overall margin Unit margin x Quantity sold
Margin rate ((PV HT – PA HT) ÷ PA HT) x 100

Application: New World Bookstore

States :

Librairie Nouveau Monde, which specializes in rare and collector's items, wants to calculate the margins on some of its recent sales to make appropriate stock and pricing decisions.

  • Old edition book: Retail price excluding tax of €50 per unit, purchase cost excluding tax of €30 per unit, sold in batches of 250 units.
  • Collection of poems: Selling price excluding tax of €70 per unit, purchase cost excluding tax of €50 per unit, sold in batches of 150 units.
  • Comic book series: Retail price excluding VAT of €25 per unit, purchase cost excluding VAT of €15 per unit, sold in batches of 400 units.

Work to do :

  1. Establish the unit margin for each type of book sold.
  2. Calculate the overall margin for each item category.
  3. Determine the markup rate for these items.
  4. Consider the effects of a 10% increase in the cost of purchasing old edition books.
  5. Deduce possible strategies for better management of comic book series margins.

Proposed correction:

  1. Establish the unit margin for each type of book sold.

    The unit margin is the difference between the selling price excluding VAT and the purchase cost excluding VAT.
    For old edition books: €50 – €30 = €20

    For Poem Collections: €70 – €50 = €20

    For Comic Book Series: €25 – €15 = €10

    The respective unit margins are €20, €20, and €10.

  2. Calculate the overall margin for each item category.

    Calculation of overall margin: Unit margin x Quantity sold.
    For old edition books: €20 x 250 = €5

    For Poem Collections: €20 x 150 = €3

    For Comic Book Series: €10 x 400 = €4

    The overall margins are €5, €000, and €3.

  3. Determine the markup rate for these items.

Formula for the markup rate: ((PV HT – PA HT) ÷ PV HT) x 100.
Markup rate for old edition books: ((50 – 30) ÷ 50) x 100 = 40%

Markup rate for Poem Collections: ((70 – 50) ÷ 70) x 100 = 28,57%

Markup rate for Comic Book Series: ((25 – 15) ÷ 25) x 100 = 40%

The mark rates are 40%, 28,57%, and 40% respectively.

  1. Consider the effects of a 10% increase in the cost of purchasing old edition books.

    New purchase cost: €30 x (1 + 0,10) = €33

    New unit margin: €50 – €33 = €17

    New overall margin: €17 x €250 = €4

    The increase in the purchase cost leads to a decrease in the unit margin and a drop in the overall margin to €4.

  2. Deduce possible strategies for better management of comic book series margins.

    To better manage margins on comic book series, strategies include negotiating better purchasing costs, increasing the sale price when viable, and diversifying into more profitable collector's editions.

Formulas Used:

Title Formulas
Unit margin PV HT – PA HT
Overall margin Unit margin x Quantity sold
Brand taxes ((PV HT – PA HT) ÷ PV HT) x 100

Application: TechMobile

States :

TechMobile is an innovative company in the development and marketing of technological gadgets. The management must analyze the margins on three flagship products:

  • EcoPod: Selling price excluding VAT of €180 per unit, production cost excluding VAT of €110 per unit, sold in quantities of 400 units.
  • SmartWatch: Selling price excluding tax of €250 per unit, production cost excluding tax of €150 per unit, sold in quantities of 300 units.
  • NanoDrone: Selling price excluding tax of €300 per unit, production cost excluding tax of €200 per unit, sold in 200 units.

Work to do :

  1. Calculate the unit margin for each gadget.
  2. Calculate the overall margin for each gadget sold.
  3. Detail the margin rate for these products.
  4. Evaluate the implications of a €15 drop in the production cost of the EcoPod.
  5. Propose a pricing strategy to maximize the SmartWatch margin.

Proposed correction:

  1. Calculate the unit margin for each gadget.

    The unit margin is calculated as follows: PV excluding VAT – Production cost excluding VAT.
    For the EcoPod: €180 – €110 = €70

    For the SmartWatch: €250 – €150 = €100

    For the NanoDrone: €300 – €200 = €100

    The unit margins are respectively €70, €100, and €100.

  2. Calculate the overall margin for each gadget sold.

    Calculation of overall margin: Unit margin x Quantity sold.
    For the EcoPod: €70 x 400 = €28

    For the SmartWatch: €100 x 300 = €30

    For the NanoDrone: €100 x 200 = €20

    The overall margins are €28, €000, and €30.

  3. Detail the margin rate for these products.

Margin rate: ((PV excluding VAT – Production cost excluding VAT) ÷ Production cost excluding VAT) x 100.
EcoPod margin rate: ((180 – 110) ÷ 110) x 100 = 63,64%

SmartWatch Margin Rate: ((250 – 150) ÷ 150) x 100 = 66,67%

NanoDrone Margin Rate: ((300 – 200) ÷ 200) x 100 = 50%

The margin rates are 63,64%, 66,67%, and 50%.

  1. Evaluate the implications of a €15 drop in the production cost of the EcoPod.

    New production cost: €110 – €15 = €95

    New unit margin: €180 – €95 = €85

    New overall margin: €85 x €400 = €34

    A reduction in production cost increases the unit margin and the overall margin to €34, thus improving profitability.

  2. Propose a pricing strategy to maximize the SmartWatch margin.

    To maximize the SmartWatch margin, TechMobile could consider valuing the product's technology and innovation to justify an increase in the selling price, or optimizing production costs. Market analyses should support the strategy so as not to reduce the sales volume.

Formulas Used:

Title Formulas
Unit margin PV HT – Production cost HT
Overall margin Unit margin x Quantity sold
Margin rate ((PV HT – Production cost HT) ÷ Production cost HT) x 100

Application: Art Ceramics

States :

Céramiques d'Art is a workshop-boutique dedicated to the creation of unique ceramic pieces. The owner must calculate the margins generated by her products to better direct her production efforts:

  • Handmade bowl: Selling price excluding tax of €45 per unit, manufacturing cost excluding tax of €25 per unit, sold in quantities of 150 units.
  • Decorative vase: Selling price excluding tax of €100 per unit, manufacturing cost excluding tax of €65 per unit, sold in packs of 100 units.
  • Earthenware dish: Selling price excluding tax of €60 per unit, manufacturing cost excluding tax of €35 per unit, sold in batches of 200 units.

Work to do :

  1. Calculate the unit margin for each ceramic item.
  2. Calculate the overall margin for each type of item sold.
  3. Determine the markup rate of each product.
  4. Evaluate the pros and cons of a 10% increase in the selling price of the decorative vase.
  5. Suggest ways to increase the profitability of earthenware plates.

Proposed correction:

  1. Calculate the unit margin for each ceramic item.

    Unit margins: PV excluding VAT – Manufacturing cost excluding VAT.
    For the Artistic Bowl: €45 – €25 = €20

    For the decorative vase: €100 – €65 = €35

    For the earthenware dish: €60 – €35 = €25

    The unit margins are therefore €20, €35, and €25.

  2. Calculate the overall margin for each type of item sold.

    Overall margin: Unit margin x Quantity sold.
    For the Bowl: €20 x 150 = €3

    For the Vase: €35 x 100 = €3

    For the Dish: €25 x 200 = €5

    The overall margins are €3, €000, and €3.

  3. Determine the markup rate of each product.

Markup rate: ((PV excluding VAT – Manufacturing cost excluding VAT) ÷ PV excluding VAT) x 100.
Score rate for the Bowl: ((45 – 25) ÷ 45) x 100 = 44,44%

Mark rate for the Vase: ((100 – 65) ÷ 100) x 100 = 35%

Markup rate for the Dish: ((60 – 35) ÷ 60) x 100 = 41,67%

The mark rates are 44,44%, 35%, and 41,67%.

  1. Evaluate the pros and cons of a 10% increase in the selling price of the decorative vase.

    New sale price: €100 x (1 + 0,10) = €110

    New unit margin: €110 – €65 = €45

    New overall margin: €45 x €100 = €4

    Price increase improves unit and overall margin, but could reduce demand if the market does not justify it. The balance between volume and margin must be considered.

  2. Suggest ways to increase the profitability of earthenware plates.

    Improving profitability can be done by optimizing the manufacturing process to reduce costs, increasing the selling price with better product valuation, or boosting production and sales volume by diversifying lines.

Formulas Used:

Title Formulas
Unit margin PV HT – Manufacturing cost HT
Overall margin Unit margin x Quantity sold
Brand taxes ((PV HT – Manufacturing cost HT) ÷ PV HT) x 100

Application: Modern Garden

States :

Jardin Moderne is a company that sells gardening equipment and accessories. Faced with increased competition, it is important to understand the margins generated by its flagship products:

  • Electric lawn mower: Selling price excluding tax of €400 per unit, acquisition cost excluding tax of €300 per unit, sold in batches of 50 units.
  • Garden parasol: Selling price excluding VAT of €150 per unit, acquisition cost excluding VAT of €90 per unit, sold in batches of 200 units.
  • Watering system: Selling price excluding tax of €120 per unit, acquisition cost excluding tax of €70 per unit, sold in quantities of 150 units.

Work to do :

  1. Calculate the unit margin for each gardening product.
  2. Calculate the overall margin for each product sold.
  3. Analyze the margin rate of each product.
  4. Consider the effects of a 5% increase in acquisition costs for patio umbrellas.
  5. Recommend actions to increase the profitability of irrigation systems.

Proposed correction:

  1. Calculate the unit margin for each gardening product.

    Unit margin: PV excluding VAT – Acquisition cost excluding VAT.
    For the Mower: €400 – €300 = €100

    For the Parasol: €150 – €90 = €60

    For the watering system: €120 – €70 = €50

    The unit margins are €100, €60, and €50.

  2. Calculate the overall margin for each product sold.

    Overall margin: Unit margin x Quantity sold.
    For the Lawn Mower: €100 x 50 = €5

    For the Parasol: €60 x 200 = €12

    For the watering system: €50 x 150 = €7

    The overall margins are €5, €000, and €12.

  3. Analyze the margin rate of each product.

Margin rate: ((PV HT – Acquisition cost HT) ÷ Acquisition cost HT) x 100.
Lawn Mower Margin Rate: ((400 – 300) ÷ 300) x 100 = 33,33%

Parasol Margin Rate: ((150 – 90) ÷ 90) x 100 = 66,67%

Irrigation System Margin Rate: ((120 – 70) ÷ 70) x 100 = 71,43%

The margin rate of each product shows its implication for the pricing policy.

  1. Consider the effects of a 5% increase in acquisition costs for patio umbrellas.

    New cost of purchasing the Parasol: €90 x (1 + 0,05) = €94,50

    New unit margin: €150 – €94,50 = €55,50

    New overall margin: €55,50 x €200 = €11

    This increase in costs would lead to a reduction in the unit margin and a low overall margin.

  2. Recommend actions to increase the profitability of irrigation systems.

    To increase profitability, optimizing supply to reduce costs, diversifying products to attract new segments and considering more competitive sales prices with ancillary solutions can be promising strategies.

Formulas Used:

Title Formulas
Unit margin PV HT – Acquisition cost HT
Overall margin Unit margin x Quantity sold
Margin rate ((PV HT – Acquisition cost HT) ÷ Acquisition cost HT) x 100

Application: Fitness Dreams

States :

Fitness Dreams is a high-end gym that also sells sports nutrition products. To boost its financial performance, management wants to better understand the profitability of these products:

  • Protein bars: Retail price excluding VAT of €3 per unit, purchase cost excluding VAT of €1,80 per unit, sold in quantities of 1 units.
  • Personalized shakers: Selling price excluding tax of €12 per unit, purchase cost excluding tax of €6 per unit, sold in packs of 500 units.
  • Energy gels: Selling price excluding tax of €2,50 per unit, purchase cost excluding tax of €1,20 per unit, sold in quantities of 2 units.

Work to do :

  1. Calculate the unit margin for each nutrition product.
  2. Calculate the overall margin for each product sold.
  3. Determine the markup rate for these products.
  4. Consider the impact if the cost of purchasing energy gels increases by 15%.
  5. Suggest strategies to increase the profitability of protein bars.

Proposed correction:

  1. Calculate the unit margin for each nutrition product.

    Unit margin: PV excluding VAT – Purchase cost excluding VAT.
    For Protein Bars: €3 – €1,80 = €1,20

    For Shakers: €12 – €6 = €6

    For Energy Gels: €2,50 – €1,20 = €1,30

    The unit margins are €1,20, €6, and €1,30.

  2. Calculate the overall margin for each product sold.

    Overall margin: Unit margin x Quantity sold.
    For Protein Bars: €1,20 x 1 = €500

    For Shakers: €6 x 500 = €3

    For Energy Gels: €1,30 x 2 = €000

    The overall margins are €1, €800, and €3.

  3. Determine the markup rate for these products.

Markup rate: ((PV excluding VAT – Purchase cost excluding VAT) ÷ PV excluding VAT) x 100.
Protein Bars Brand Rate: ((3 – 1,80) ÷ 3) x 100 = 40%

Shakers' Mark Rate: ((12 – 6) ÷ 12) x 100 = 50%

Energy Gels Brand Rate: ((2,50 – 1,20) ÷ 2,50) x 100 = 52%

Markup rates allow you to quickly visualize the profitability of the sale.

  1. Consider the impact if the cost of purchasing energy gels increases by 15%.

    New purchase cost: €1,20 x (1 + 0,15) = €1,38

    New unit margin: €2,50 – €1,38 = €1,12

    New overall margin: €1,12 x 2 = €000

    An increase would result in a significant reduction in margins, requiring possible adjustments elsewhere.

  2. Suggest strategies to increase the profitability of protein bars.

    Improving bar profitability can be achieved by optimizing costs with suppliers, increasing customer loyalty through promotional programs, or re-evaluating the product target to justify a premium price.

Formulas Used:

Title Formulas
Unit margin PV HT – Purchase cost HT
Overall margin Unit margin x Quantity sold
Brand taxes ((PV HT – Purchase cost HT) ÷ PV HT) x 100

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