So, what's the margin?
Posted on 2011-03-07
I have some knowns and unknowns and can't seem to do the calculus. So, I'm going to take a break and in the meantime see if I can't get some help.
I have the following data: Volume, Total Margin, % Sold thru Channel A, and % Sold thru Channel B. I need to determine unit and total margin for both Channels. I also know that my $/unit margin for Channel A is twice what it is for Channel B.
E.g., Volume = 100 units, %A = 50% @ $.50/unit, %B = 50% @ $.25/unit. So 50 units sold Channel A @ $25 and 50 units sold Channel B @ 12.5, for a total Margin of $37.5
Now, if I have Volume = 100 units and %A = 75%, %B = 25% and I know my total margin is $100, what is my margin for Channel A and Channel B on a per unit and total basis?
Can someone create a formula based on %A and %B sold for X Total Volume and Y Total Margin, what would be the unit and total margin for Channel A and for Channel B? What if the margin relationship changes and that relationship is Z? E.,g., now unit margin A = 2 * unit Margin B