The budget can be enhanced to better explain variances by including additional items in the budget, such as: optimum capacity (in units), capacity utilization percentage, fixed cost of sales, fixed cost of sales per unit, variable cost of sales, variable cost of sales per unit, unutilized capacity cost, gross profit margin
before unutilized capacity costs (the normal gross profit margin
that the business would expect to achieve at optimum capacity utilization), and gross profit margin
of unutilized capacity costs (the impact of unutilized capacity costs on the total gross profit margin
As with Liters, 750ml Gross Profit Margin
(GPM) indicates the amount of profit achieved per sale expressed by percentage.
A manager of Cheng Uei stated that the firmi's remarkable growth in gross profit margin
was mainly due to expanding manufacturing scale and relatively high gross profit margin
of new products.
The company, which owns brands such as Five Roses, Bakers, Ellis Brown, Frisco and Willards, had operating profits increased 26,8 per cent to R855m due to the higher gross profit margins
and a controlled increase in selling and administration costs.
But to explain why the gross profit margin
is so important, let's use some more analogies.
Such product shift enabled Ability to see second-quarter ASP rise steadily, with gross profit margin
hitting a new seven-quarter high to 10.
India-based Usha Martin Limited (Usha Martin) (BSE: 517146) is expecting to increase its gross profit margin
in fiscal 2011, Dow Jones has reported citing a senior company executive.
Institutional investors believed if domestic cement price rises by over 15%, Taiwan Cement and Asia Cement, Taiwan's two leading cement producers, will be able to raise gross profit margin
by two to three percentage points in the second half of this year.
6% gross profit margin
for non-consolidated sales, Hon Hai still enjoys bigger profit margin in sales of electronic components by subsidiaries, including Q-Run Technology Corp.