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
A landlord charges the same apartment rent as last year, but now adds a fee for parking spaces. This practice is known as <u>Unbundling</u>.
<u>Explanation:</u>
Unbundling means that certain items or the services are being marketed or are being charged for. This charge is separated and is not a part of the whole package.
In the above example, the landlord charged a separate amount as the fee of the parking lot of the apartment. This was not included in the rent of the apartment. Therefore it is known to be as unbundling because it is not a part of the bundle. It is separate.
When health educators are creating and developing print materials, they need to incorporate the behavior change theory and models to decide how to formulate messages? The behavior change theory studies different types of change and how people react to them. Figuring out how people may react to messages allows people to have a better idea on how to address them.
Answer:
the activity or profession of producing advertisements for commercial products or services.
Explanation:
Answer:
$52.89
Explanation:
To calculate the present value of a stock, we use the formula,
<u>D + E</u>
(1 + R)^Y
where, D = expected dividend, $4.35
E = expected stock price, $57
R = real rate of return, 16% or 0.16
Y = Number of years, 1
we have,
<u>$4.35 + $57</u>
(1 + 0,16) ^1 = $61.35 ÷ 1.16
= $52.887 ≈ $52.89.
The present value of the stock is $52.89.
Cheers.
