1. The importance of Gross margin Example 1: Sales price ok, sales volume ok compared to the size of the company: Sales income100 units x 60.000 6.000.000 - Variable expenses 100 units x 30.000-3.000.000 Gross margin3.000.00050 % - Fixed costs-2.000.000 Profit1.000.00017 %

2. The importance of Gross margin Example 2: Sales price too low, volume ok: Sales income100 units x 50.0005.000.000 - Variable expenses 100 units x 30.000-3.000.000 Gross margin2.000.00040 % - Fixed costs-2.000.000 Profit00 % Low Gross margin indicates that the sales price is too low compared to the variable costs (raw materials, production costs,…)

3. The importance of Gross margin Example 3: Sales price ok, volume too low: Sales income70 units x 60.0004.200.000 - Variable expenses 70 units x 30.000-2.100.000 Gross margin2.100.00050 % - Fixed costs-2.000.000 Profit100.0002,5 % Low profit-% indicates that the sales price is too low compared to the variable costs, or that the sales volume is too low compared to the fixed costs.