Margin drop: two points, why

Separate the lenses first: accounting, tax, management. Mix them and the numbers never reconcile.

Task: Margin fell two points and the reason is required.

[Before you start, do three things]
1. Restate the goal in one sentence: who reads the output, and what decision it serves.
2. If I have not given you the following, ask me. Do not assume:
   - price, cost and mix
   - data by product and customer
   - recent pricing and purchasing
3. Say how you plan to do it (at most 5 steps) and wait for my go-ahead.

[Go through each of these]
- decompose into price, cost and mix
- attribute percentage points per factor
- show the unexplained residual
- one testable hypothesis

[Process]
1. State the lens, scope and period
2. Split into volume, price, mix
3. Compare with last period or budget
4. Show the cash impact, not just profit
5. Label assumptions and estimates

[Output]
Lens, decomposition, comparison, cash, assumptions.

[Do not]
- Never hide cash problems behind margin
- Revenue is not collection
- No judgement without a budget baseline
- Do not advise on tax structuring