Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
This week in the live session we will look at something called the contribution margin. For those of you in accounting and finance this is a widely used concept. The contribution margin, or sometimes it called the percent contribution margin is (P-MC)/P or (P-AVC)/P where:
Let's focus in on the heart of this equation (P-AVC). The equations shows the spread between the price, P, at which we sell an item and the MC or the AVC shows the cost of one item. That spread is the net profit per unit. It represents net gain from the sale of one more unit. Now, when economies of scale or economies of scope increase, both have the same effect, cost decreases. The spread, the gain from selling each unit increases, the marginal profit rate increases. But when there are decreases in economies of scale or scope, the spread between price and MC and AVC narrows. Net profits per unit fall.
The contribution margin shows how profits expand and contract as costs change. Both economies of scale and scope change cost, but they so by different processes. Can you explain that difference? It is a tricky idea, but understanding the difference is one way to think about how to engineer new business opportunities.
Feeling challenged by the discussion? Just try the discussion preparation help.
Have fun with this.
1. What are the key elements that make Apple's current business model successful?
An agent for a residential real estate company in a suburb located outside of Washington DC, has the business objective of developing more accurate estimates of
Discuss the conditions under which group norms most influence productivity and what are the important factors mitigating the influence of groups norms? Explain your answer?
What types of public-relations tools can organizations use? How might an organization benefit from using publicity?
Evaluate the organization structure needed to successfully execute your strategy. Establish a Go-to-Market Strategy
According to the text, the Hatch Act defines prohibited activities of public employees. Analyze the significance of these prohibitions with regard to an individual's political actions. Provide a rationale for your response.
Provide a overview of How Amazon, Apple, Facebook and Google manipulate our emotions.
Given a fixed price incentive contract with a target cost of $1,000,000, a target profit of $100,000, a ceiling price of $1,200,000, and a share line of 80/20
"For any organization to survive in the changing business and political environments they need to have clearly set out financial and strategic objectives"
Provide examples of real organizations that represent each level of risk tolerance: risk-averse, risk-neutral and risk-see
A popular idea in economics (based on the so-called Coase Theorem) is that regardless of goods are allocated in an economy, people will trade their way to an ef
The rhetoric of the American Revolution stresses ideas such as freesom, liberty,and democracy. Describe the impact of these revolutionary ideas on American society and how they were manifested in immediate aftermath of the Revolution's War.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd