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:
The correct answer would be, Partner with an older, well connected socialite couple to endorse the brand.
Explanation:
As Rachael is the owner of the watchmaking company and has the authority to change the marketing strategies and mixes for the brand. She decides to totally change the target market for her brand. She now focuses on old wealthy, craftsman who seek quality. So now she needs to promote her new marketing mix, to target her new market. So for this, the best strategy which she can use in support of her marketing mix would be to make an older well connected socialite couple, her partner, to promote and endorse her brand. This will help her promote her new exclusive collection and can target the old wealthy quality seekers easily.
Why is it important to keep your career plans flexible at this point in your life, <span>Sticking to one career now may limit your opportunities in the future. Now is the time to explore different possibilities.</span>
Answer:
cost-based transfer pricing
Explanation:
If the firm uses negociated rtansfer pricing they will stablish the transfer price based on manager bargain skill and leverage of each division. The CEO will not a grip on controlling cost across all dvisions, the managers will.
Therefore the best option is to go with a cost-based transfer pricing. The CEO can determinatethe method to determinate the cost and indriectly the cost across all divisions.
The bathrooms of a restaurant should be checked hourly but completely cleaned at least once a day<span />
