Worksheet: Separate price, volume and mix in the monthly report

An average price line mixes product, customer and volume effects until it means nothing. This sheet splits the revenue change into price, volume and mix, adds a line for the latest increase, and names who answers for it. It builds the Competent step of the check:

Price, volume and mix are separated in monthly reporting, and realisation of increases is tracked.

Step 1. The split

Work at product level, or product group if you have too many products. "Last year" means the same month last year.

Effect	How to calculate it	This month ($)
Price	For each product: this year's price less last year's, times this year's volume. Add them up.
Volume	Total volume this year less last year, times last year's average price across all products.
Mix	For each product: last year's price times this year's volume. Add them up. Then subtract total volume this year times last year's average price.
Total	Must equal this year's revenue less last year's.

e.g. Revenue up $1.2m: price +$0.5m, volume +$0.9m, mix -$0.2m. The mix line says customers shifted to cheaper products.

Step 2. The realisation line

Increase	Announced (%)	Received to date (%)	Realisation (received ÷ announced)	Accounts still to follow up	Owner

Step 3. The one page

Section	Contents	Owner
Revenue bridge	Price, volume, mix
Margin	Gross margin after rebates, by segment
Latest increase	The realisation line
Actions	Three at most, each with a name

Done when: the monthly report separates price, volume and mix, and tracks realisation of the latest increase with a named owner.

Adapted from our own margin bridge (Deloitte, 2015).