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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Answer:
<u>Interpersonal influences and organizational factors.</u>
Explanation:
<u>Interpersonal influences</u> are those that include interests, status, and authority in an organization. It should be included in the approach for the potential new buyer to recognize the lead authorities and the interests of who might be their new supplier. It is also imperative that the marketing director include <u>organizational factors</u>, objectives, policies, and organizational processes in the approach to influence purchasing, as these factors are key to demonstrating credibility and viability for the new buyer.
Effects:
increased anti-labour and anti-immigrant sentiment and suspicion of the international anarchist movement
Causes:
Haymarket Square turned into a riot after someone threw a bomb at police.
Answer:
decrease bank reserves; decrease the exchange rate and real GDP
Explanation:
The Federal reserve uses various monetary policies to regulate cash flow in the economy with a view of managing various indices like inflation, GDP, deflation, and so on.
Interest rate is one of the monetary policies that can be used to.vonttol the economy.
When interest rate is high cost of borrowing cash from commercial banks will be high so people are discouraged from borrowing. There is higher reserve in banks, and cash flow is restricted.
However in a situation where the economy is troubled the Federal Reserve will reduce interest rate.
This results in cheaper cost of borrowing funds, commercial bank reserves will reduce because of increased outward flow of cash.
As the cash in the economy is in excess the rate at which it exchanges for foreign currencies will fall.
This in turn results in more money being spent on foreign goods and will reduce real GDP
