The answer should be B..............................................................................
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
1:People have too much money, and there is a danger of inflation. - <span>B contractionary fiscal policy
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2:The GDP has fallen to an all-time low, and there is low demand for most goods. - </span><span>D:expansionary fiscal policy
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3:Few farmers produce cotton because profits are at the equilibrium price. - </span><span>A:price floor
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4:Prices of staple foods have shot up because of shortages after an earthquake. - </span>C:price ceiling
Answer:
FALSE
Explanation:
In marketing mix, we have four Ps:
Product
Price
Place
<u>Promotion</u>
When the publisher of the well-known Babar books wanted to celebrate the 80th anniversary of the series, it initiated a $100,000 campaign. This initiative represented the promotion component in the four Ps. In promotion, we try to promote our brand by doing advertisements and promotions. We basically use the communication mix in order to promote our products and services.
