An analyst is forecasting revenue next year for Ford Motor Co. (F). The analyst believes that an upward trend in input costs will lead to all automobile manufacturers facing 2% inflation next year in their cost of goods sold (COGS).

The following table presents total revenue, COGS and gross margin details for Ford for the most recent year:

Revenues	$151.8 billion
Cost of Goods Sold	$135.5 billion
Gross Profit	$16.3 billion

The analyst forecasts the following price and volume changes for Ford for next year, based on the COGS inflation assumption:

Price increase for revenues	1.5%
Volume growth	-0.2%

9.) What should be the analysts forecast of Fords gross margin next year? (2 points)