Example of Gross Profit Margin and Forecasting

Gross Margin Per Unit note to the financial statements

This note usually lists all the items needed in calculating the gross margin. Moreover, your forecasted cost of goods sold per unit would be subtracted from your forecasted selling price per unit each year to arrive at your company's forecasted gross margin per unit for each of the forecasted years. Below is an example of a gross margin note.

Gross Margin Per Unit:
The following gross margins (per unit) have been forecasted for the 200X and 200Y business years. Moreover, these values have been used in the forecasted financial statements.

200X 200Y
Forecasted selling price per unit $20.00 $20.00
Forecasted cost per unit $10.00 $11.00
Gross Margin per unit $10.00 $ 9.00


Categories: Financial