If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.
<h3>What is a Contribution Margin?</h3>
The contribution margin can be expressed in gross income terms. After subtracting the variable element of the firm's expenditures, it indicates the extra money gained for each product sold.
The contribution margin is calculated by subtracting the selling price/unit from the variable cost/unit.
This metric displays how much a certain product adds to the company's total earnings. It displays the share of revenue that helps to pay the firm's fixed costs and gives one approach to illustrate the profit potential of a certain product supplied by a company.
Therefore, If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.
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Original price = $500
Assume that the tax rate is 8%
Cost of the TV plus tax = 500*1.08 = $540
Worth of the 25% coupon = 0.25*540 = $135
Reduced price = 540 - 135 = $405
The cost of the TV with a coupon for 25% off excluding tax is $405.
Answer: $405
Answer:
You pay taxes upfront
the maximum contribution is low
Explanation:
UTP quiz
Answer:
The question is missing the below options:
$0.
$150.
$300.
$900.
$1,200.
The answer to the question is $300
Explanation:
In determining the amount of non-value adding cost,Flagler number of hours used in setup process is compared to that of its competitor.As a result of comparison, it came to light that Flagler used two more hours in setup process.
The extra hours do not necessarily make Flagler better,instead it makes worse off, as extra $300(2hrs*$150) would have to be incurred without any benefits derived.
This extra costs that do not make the organization better off and do not add value,so it the non-value adding costs.
(8hrs-6hrs)*$150=$300
The reason for a <u>just-in-time</u> inventory strategy is to minimize tying up large sums of money for long periods of time and, in addition, to reduce the cost associated with inventory management.
inventory management enables agencies to discover which and what kind of inventory to order at what time. It tracks stock from buy to the sale of products. The exercise identifies and responds to tendencies to ensure there may be constantly sufficient inventory to satisfy patron orders and the right caution of a shortage.
Discipline inventory management generally known as stock management is the feature of know-how of the stock mix of a corporation and the exclusive demands on that inventory.
The three maximum popular inventory management strategies are the frenzy method, the pull approach, and the simply-in-time technique. these techniques offer businesses distinct pathways to assembly consumers call for.
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