Effect of Contribution Margin on the other costs is given below
Explanation:
1.Contribution margin per unit is the net amount that each additional unit sold contributes towards a company's fixed costs and profit. It equals the difference between the product's sales price and variable cost per unit.It represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm's costs.Also known as dollar contribution per unit, the measure indicates how a particular product contributes to the overall profit of the company. It provides one way to show the profit potential of a particular product offered by a company and shows the portion of sales that helps to cover the company's fixed costs. Any remaining revenue left after covering fixed costs is the profit generated.
2.The Formula for Contribution Margin Is
The contribution margin is computed as the difference between the sale price of a product and the variable costs associated with its production and sales process.
Contribution Margin=Sales Revenue - Variable Costs
3.The contribution margin is the foundation for break-even analysis used in the overall cost and sales price planning for products. The contribution margin helps to separate out the fixed cost and profit components coming from product sales and can be used to determine the selling price range of a product, the profit levels that can be expected from the sales, and structure sales commissions paid to sales team members, distributors or commission agents.
4,The contribution margin represents the portion of a product's sales revenue that isn't used up by variable costs, and so contributes to covering the company's fixed costs.
The concept of contribution margin is one of the fundamental keys in break-even analysis.
Low contribution margins are present in labor-intensive companies with few fixed expenses, while capital-intensive, industrial companies have higher fixed costs and thus, higher contribution margins
Answer:
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Answer:
Dividend yield = 16.3636%
Explanation:
As for the information provided:
Dividend yield = $4.50
And that amount is earned on the investment amount of $27.50.
The current price as stated in the formula is on which you receive the dividend.
Dividend yield = 
= 16.3636%
As the selling price is the price at which the investment in shares is sold.
That the difference in between the selling price and the price at which it is purchased is capital gain.
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The sunscreen marketers segmented
group of buyers probably by occasion segmentation where
they tend to market the product more heavily in the Midwest during summer.
Occasion segmentation is dividing the market into groups according to different
occasions example: as when the consumers actually buy, plan to buy or use the
product and others are assumed to be pertinent for a specific event, time or
day.
