Reasons for change in gross profit

The main reasons for change in gross profit due to these actions:

• The unit volume of items sold has varied/changed.

• Sales prices have varied.

• The buy price of direct materials has changed; it creates change in gross profit.

• The cost of direct labor has changed.

• The mix of products sold has changed (which changes the gross profit if different products have different gross margins)

• The quantity of direct materials required has varied/changed.

These were some basic reasons which change the gross profit. Also See Uses and advantages of Gross profit analysis here