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ololo11 [35]
1 year ago
7

digby's product manager is considering lowering the price of the don product by $2.50 and wants to know what the impact will be

on the product’s contribution margin. assuming no inventory carry costs, what will don's contribution margin be if the price is lowered?
Business
1 answer:
Zarrin [17]1 year ago
6 0

Rigby's product manager is considering lowering the price of the don product by $2.50 and wants to know what the impact will be on the product’s contribution margin. Assuming no inventory carry costs, Don's contribution margin, if the price is lowered, will be 4.00%

“Contribution margin suggests you the mixture quantity of sales to be had after variable expenses to cowl fixed prices and provide earnings to the organization,” Knight says. you would possibly think about this as the part of income that allows offsetting fixed costs.

Contribution Margin = Net Revenue - Variable Expenses

Material Cost = 604 * 14.36 = 8673.44

Labor Cost = 604 * 7.09 = 4282.36

Current price = $35

Price is lowered by $2.5 ,then new price will be = $35 - $2.5 = $32.50

Therrefore, New Sales = 604 * 32.5 = $19630

Variable expenses = 8673.44 + 4282.36 = 12955.8

Contribution margin = 19630 - 12955.8 = 6674.2

Contrinution margin ratio = contribution margin / net sales

New Contribution margin = 6674.2/19630 = 34.00%

The contribution margin is beneficial for figuring out how income, variable costs, and fixed expenses all affect operating profit. It offers enterprise owners a manner of assessing how numerous income degrees will affect profitability.

Learn more about contribution margin here   brainly.com/question/24881206

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Answer and Explanation:

The computation of annual dollar changes and percent changes for each of the following accounts is shown below:-

Particulars       2015         2014       Changes in dollar    Percent change

                           a             b               c = (a - b)                   d = c ÷ b

Short term    

investments $380,168   $239,377    $140,790                    58.82%

Accounts  

receivable  $102,276    $105,903      -$3,627                     -3.42%

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payable        0                $93,973      -$93,973                    -100%

4 0
3 years ago
[based on the results of the simulation, can policy market interventions cause a change in consumer or producer surplus? explain
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When the intervention rises the price stage of goods, then the incentive to supply extra desires increases and consequently growing manufacturers' surplus. So policy market can motivate both client and producer surplus.

A tax causes consumer surplus and producer surplus (earnings) to fall.. some of those losses are captured inside the tax, however, there may be a loss captured with the aid of no celebration—the value of the devices that could be exchanged had been there no tax. those lost gains from trade are called deadweight losses.

For each monetary transaction, there can be both producer surplus (or profit) and client surplus. The mixture–or blended–a surplus is called the economic surplus.

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6 0
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Answer: B. Public Service

Explanation:

There are 4 alternative forms of institutional advertisements being;

  1. Competitive - These types of adverts aim to show that the product presented is better than that of the competitor by showcasing its benefits and features.
  2. Reminder - As the term implies, this advertisement is meant to remind you. Remind you of the product being offered and how it has been beneficial to you.
  3. Pioneering - This is for products that are just starting out and need to be introduced to inform the market of its existence.
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These are the four alternative forms of institutional advertisements and Public Service is not one of them.

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