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Build a gross margin bridge and check it ties to the reported figure

  • For FP&A and financial analysts
  • You practice Catching mistakes and made-up facts
  • Time about 5 minutes
  • Level Advanced

About this exercise

You're explaining why gross margin fell from Q2 to Q3. Write a prompt for a markdown table with columns Step | Change (pts) | Margin after, rows Q2 gross margin, Hosting, Support staff, Customer credits, then a line starting "Check:" that shows the bridge arithmetic and says whether it matches the reported Q3 margin. Convert each dollar cost into points of Q3 revenue. Use the controller's Q2 margin. No commentary. Under 100 words. No bullets.

Common mistakes when you ask AI for this

  • Using the slide's 63.0%. The AI starts the bridge at the typo and doesn't tie to 59.5%. Try: Say: "Start from the controller's Q2 margin, 62.0%."
  • Dollars instead of points. The AI lists dollar changes in the pts column. Try: Add: "Change (pts) = dollar increase / $6,000,000 x 100."
  • Adding the price increase. The AI invents a positive step for the 3% price increase. Try: Add: "Leave out the price increase."
  • No tie-out. The AI never shows the bridge matches the reported margin. Try: Add: 'One line "Check:" with the arithmetic.'
  • Trusting the AI to count words. AI is bad at counting and runs past word limits. Try: Ask for fewer words than the real cap and keep each line short.

What a strong prompt includes

  • Names the columns
  • Uses the controller's figure
  • Gives the conversion
  • Leaves out the price increase
  • Asks for the check line

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