Utilizing the concept of contribution margins

Assignment Help Operation Management

Reference no: EM131230464

Discuss the following comments made by two different CEOs of large industrial distribution firms. One CEO states: “By utilizing the concept of contribution margins we have accepted orders that we would have otherwise rejected. We believe that such a concept is very beneficial.” However the other CEO states: “We don’t use the concept of contribution margin in determining whether to accept or reject an order, because in the long run the use of contribution margins lowers our overall profitability.”

Reference no: EM131230464

Questions Cloud

Literature endows a society with ethical codes : Literature endows a society with ethical codes, traditions and religious principles. How did literature shape ancient society in China, Egypt, Israel, and India? How do you think that accessibility to literature and literacy affected ancient societie..

Determining the size of dividends to be paid to shareholders : Determine at which level of management (i.e., top management, middle management, or first-level supervision) the following decisions should be made. For each, share your reasons and the factors you considered in making the decision. Determining the s..

What factors should be considered by qantas management : If Qantas decides to outsource, list and describe points that should be addressed in a service level agreement.

Developing local markets requires the building : Developing local markets requires the building the teams who can execute within country and across borders and oceans. When building up a new market, how can the firm leverage its strengths in the home market and enable its capabilities in the new ma..

Utilizing the concept of contribution margins : Discuss the following comments made by two different CEOs of large industrial distribution firms. One CEO states: “By utilizing the concept of contribution margins we have accepted orders that we would have otherwise rejected. We believe that such a ..

Identify the aacn bsn essential : Identify the AACN BSN Essential that you have selected by name and number. Clearly and thoroughly explain why you selected this Essential. Clearly and thoroughly explain how this Essential will be used in your future professional nursing career.

Think of viable business venture : Think of a viable business venture you could embark on and share your ideas using the following questions: Which niches can you own in this proposed venture? Of these which would be the most profitable?

How do these ideas relate to how you experience leadership : What are the key ideas that Simon Sinek presents in the beginning of his book. How do these ideas relate to how you experience leadership today? Describe the roles that E.S.D.O play in leadership. How can knowing this chemistry benefit a leader? What..

Describe the concept of due care and due diligence : Discuss the importance of the security professional to be knowledgeable with State and Federal Regulations, Directives, and Acts. Describe the concept of due care and due diligence.

User Account

All Pages