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2 years ago

Besides lowering price, what actions can Jackie propose to improve contribution margin?

Business

1 answer:

alexira [117]2 years ago

6 0

Besides lowering the price, Jackie can improve contribution margin by ensuring that:

Quality remains the same or better
the company leverages social media marketing which is cheaper than conventional marketing and is better targeted.

<h3>What does price reduction do?</h3>

Price reduction (if all other factors remain constant) helps to drive up demand. This is consistent with the Law of Demand in basic Economics.

If Jackie is trying to drive up profit margin, they must thus consider the options given above.

Learn more about lowering prices ta;
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List the advantages and disadvantages of a Small Business:

natulia [17]

Answer:

Kindly check explanation

Explanation:

Small businesses may be defined based on various criteria ranginging from the size of running capital, number of employees and even customer base. What is obvious is that most small business require very little capital, limited number of employees and small market size. Small businesses offers the following advantages :

Financial liberty which affords it's doers the ability to cater for themselves or buttress on their initial EARNING.

INCREASED RESPONSIBILITY : Business owners take absolute charge of business decisions thereby broadening their scope and offering more independence and greater control.

Another advantages of having a small business is the fact that efforts and commitment put into the sustenance and growth of the business will be duly reaped by the owner. Rather than having to work for someone else to earn a greater portion of the return.

However, it also has its disadvantages which ranges from :

Exposure to financial risk arising from business collapse such that one has to deal with the burden alone.

The effort put in to keep business aloft may become overwhelming due to lack of adequate employees which may result in health impairment.

4 0

3 years ago

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations a

Finger [1]

Answer:

Tiger Furnishings

The predetermined overhead rate

= $34.30 per direct labor hour

Explanation:

a) Data and Calculations:

Basic Dominator Total

Units produced 950 500 1,450

Machine-hours 3,200 2,400 5,600

Direct labor-hours 2,700 1,100 3,800

Direct materials costs $9,600 $3,900 $13,500

Direct labor costs 63,700 37,700 101,400

Manufacturing overhead costs 130,340

Total costs $245,240

b) Computation of the Predetermined overhead rate

= Total manufacturing overhead costs divided by total direct labor hours

= $130,340/3,800

= $34.30 per direct labor hour

6 0

3 years ago

What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix would be 43 percent ch

Nookie1986 [14]

Answer:

a. Anticipated level of profit.

Profit = Contribution margin of Chicken + Contribution Margin of Fish - Fixed costs

Contribution margin of Chicken

= (Selling - Variable costs) * Units sold

= ( 3.9 - 1.95) * 209,000

= $407,550‬

Contribution Margin of Fish

= (Selling - Variable costs) * Units sold

= ( 5 - 2.5 ) * 305,000

= $762,500‬

Profit = 407,550‬ + 762,500‬ - 111,000

Profit = $‭1,059,050‬

b. Break-even using weighted-average contribution margin.

Breakeven point = Fixed Cost/ Weighted Contribution margin

Weighted contribution margin

= (Proportion of chicken * Contribution margin of chicken) + (Proportion of fish * Contribution margin of fish)

= ( 43% * (3.9-1.95)) + ( 57% * ( 5 - 2.5 ))

= $2.2635‬

Breakeven point = 111,000 / 2.2635‬

= 49,039 units

c. Sales mix changes to four chicken tacos for each fish taco.

That means 0.8 chickens and 0.2 fish.

= (Proportion of chicken * Contribution margin of chicken) + (Proportion of fish * Contribution margin of fish)

= ( 80% * (3.9-1.95)) + ( 20% * ( 5 - 2.5 ))

= $2.06

Breakeven point = 111,000 / 2.06

= 53,883 units

Chicken = 80% * 53,883

= 43,106 units

Fish = 53,883 - 43,106

= 10,777 units

<em>Attached photo is similar question as yours is missing details. </em>

8 0

3 years ago

Heller Company offers an unconditional return policy to its customers. During the current period, the company records total sale

Evgen [1.6K]

Answer:

A. $816,000

Explanation:

The formula to compute the net sales is shown below:

= Total sales - sales returned

where,

Sales returned = Total sales × sales return percentage

= $850,000 × 4%

= $34,000

And, the total sales is $850,000

Now put these values to the above formula

So, the value would equal to

= $850,000 - $34,000

= $816,000

5 0

3 years ago

Suppose a customer is the one who randomly selects and then purchases the four apples. if an apple is damaged, the customer will

tatiyna

What is the question?

8 0

3 years ago