The Margin Bridge Builder
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Explain exactly why our margin changed between these two periods. Period 1: [REVENUE, COSTS, VOLUME, PRICE, MARGIN] Period 2: [REVENUE, COSTS, VOLUME, PRICE, MARGIN] Build a margin bridge that decomposes the change into: 1. Volume effect 2. Price effect 3. Mix effect (if multiple products) 4. Input cost / variable cost effect 5. Fixed cost / operating leverage effect Show each effect in dollars, reconcile them back to the total margin change, and tell me the one or two factors that drove most of the move — and whether they're within our control.
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