I am doing an analysis of Cost/Sales % (C/S%). At the same time, I
need to compare it with previous...

Question

I am doing an analysis of Cost/Sales % (C/S%). At the same time, I
need to compare it with previous month's C/S%. Below is my case.
Say, Jan'12 C/S% = 13.1%, Feb'12 C/S% = 15.8% (Increase by 2.7% -
15.8% minus 13.1%)
Jan'12 Sales = $8,465,000, Cost = $1,112,099
Feb'12 Sales = $865,156, Cost = $136,786
Further to that, I am required to work out the reason for the change,
and the movement analysis of Sales and Cost have been performed. The
movement as follows:
1) Selling Price Decreased by $2,844
2) Cost Increased by $937
3) Change in Sales Mix - Sales reduced by $7,597,000 and Cost reduced
by $1,010,000
4) Change in Cost Absorption difference - Cost increased by $33,750

How do I determined the C/S% walk for each contributing reasons above,
which ultimately equals to 2.7%?
I have been working on this for quite sometimes but to no avail.
Thank you in advance for your help.

David · Accepted Answer

I am doing an analysis of Cost/Sales % (C/S%).  
At the same time, I need to compare it with previous month's C/S%.  
Below is my case. Say,  
Jan'12 C/S% = 13.1%,  
Feb'12 C/S% = 15.8% (Increase by 2.7% - 15.8% minus 13.1%) Jan'12 Sales = $8,465,000, Cost 
= $1,112,099 Feb'12 Sales = $865,156, Cost = $136,786  
Further to that, I am required to work out the reason for the change, and the movement analysis 
of Sales and Cost have been performed.  
The movement as follows:  
1) Selling Price Decreased by $2,844  
2) Cost Increased by $937  
3) Change in Sales Mix - Sales reduced by $7,597,000 and Cost reduced by $1,

I am doing an analysis of Cost/Sales % (C/S%). At the same time, I need to compare it with previous month's C/S%. Below is my case. Say, Jan'12 C/S% = 13.1%, Feb'12 C/S% = 15.8% (Increase by 2.7%...

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