Hi all,
What would happen to a business in terms of gross margin / EBITDA margin when it has one unit growing slow with high margin and another one growing fast with low margin You know that overall sales growth is 10%. Is the gross margin growing more or less ?
Thanks all for your input !
It depends on the sales mix of each unit. This sounds like a simple GMAT quant question that you could solve or not solve by simply setting up the algebra.
I was thinking that: - assuming you have some fixed costs allocated to your COGS, then the growth of margin is greater than the one from the sales - if not, then it's the same
Am I missing the point ?
Thanks,
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