If Cost of Goods Sold increase what happends to gross margin?

Basically, if Cost of Goods Sold increases, Profit will decrease unless the company/business increases how much they charge for the item and/or service.

For example, if it originally cost a company $100 to make a computer that sold for $200, the profit margin is around $100. However if that cost of goods rises to say $150 and the company still on charges $200 for the product, then the profit margin is now only around $50. That is a crude and very unlikely scenario, but I hope it help explain what I was trying to say.