Hi I'm trying to create a gross profit bridge. We have multiple business units who contribute to the overall GP of the company.
We want to determine how each business unit contributes to the rise or fall of the overall GP.
Example of model:
The "overall company 2015" line is the actual rev/cost/gp
Each Business unit line underneath is the increase/decrease in revenue and cost year over year. ie 2016 revenue = 20, 2015 revenue = 8, plug in 12 (same with cost)
I need to somehow show how the overall 2015 GP drops or increase because of the business unit's gain or fall in revenue and cost.
revenue cost GP margin impact
Overall company 2015 100 50 50%
Business unit 1 '16 12 14 47% -3 points
Business unit 2 '16 20 30 40% - 7 points
Overall company 2016 132 94 40%
note: none of these numbers are supposed to make sense i plugged in random numbers
does anyone know a formula i could use to help make sense of this?
We want to determine how each business unit contributes to the rise or fall of the overall GP.
Example of model:
The "overall company 2015" line is the actual rev/cost/gp
Each Business unit line underneath is the increase/decrease in revenue and cost year over year. ie 2016 revenue = 20, 2015 revenue = 8, plug in 12 (same with cost)
I need to somehow show how the overall 2015 GP drops or increase because of the business unit's gain or fall in revenue and cost.
revenue cost GP margin impact
Overall company 2015 100 50 50%
Business unit 1 '16 12 14 47% -3 points
Business unit 2 '16 20 30 40% - 7 points
Overall company 2016 132 94 40%
note: none of these numbers are supposed to make sense i plugged in random numbers
does anyone know a formula i could use to help make sense of this?
