calculations made show that increase in the unit cost of product A caused diminution in the product

profitability by 32.21% at the same time the grows in unit price allows compensate the reduction in
product profitability due to increase in unit cost by 6.53 %. Further in this case enterprise need to
elaborate majors in order to reduce the unit cost of product A.
In foreign practice analysis of sales revenue profitability is known as gross margin analysis, if you to
asses not only the profitability of every individual product but also profitability of all products we should
calculate gross profit ratio. Gross margin reflects how many bani of gross profit every lei of sales
revenue can generate. GROSS MARGIN = GROSS PROFIT/SALES REVENUE x 100%.
The dynamics of gross margin can be changed under the influence of the following factors:
a) Modifications in structure of sales revenue
b) Modifications in unit costs
c) Modification in unit price
In order to perform the factorial analysis of gross margin we should apply the same initial data that we
used for factorial analysis of gross profit.