Explain the difference between marginal and average contribution margins. Why is it important to distinguish between them

Question:

Explain the difference between marginal and average contribution margins.

Why is it important to distinguish between them when making operational decisions?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Entrepreneurial Finance Venture Capital Deal Structure And Valuation

ISBN: 9781503603219

2nd Edition

Authors: Janet Kiholm Smith, Richard L. Smith

See More Books

Question Posted: Apr 26, 2024 06:02 AM

See More Questions

1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
It is July 1, 2023, Jim and Pam Halpert have just left your office after their first interview with you. In preparation for the interview, you had sent them a list of the various documents that they...
Cutler Manufacturing manufactures and distributes specialty piping used in the construction industry. Due to the recent contraction in the commercial construction market, the company has had...
Match each component with the related definition by entering the appropriate letter in the space provided. Components Definitions --1. Investor information Web site............. A. Individual who...
How has the gender makeup of the management teams you have worked for shaped the work environment?
4. Volunteers collect money and nonperishable food for the Food Pantry, a nongovernmental VHWO, by going house to house once each year for donations. The services of the volunteers should be...
Assume that Posies Unlimited does a regression analysis on the next years data using Excel. The output generated by Excel is as follows: Requirements 1. Determine the firms cost equation (use the...
! Required information [The following information applies to the questions displayed below.) The following Cash T-account shows the total debits and total credits to the Cash account of Thomas...
Why is it important for an entrepreneur to plan for unexpected productmarket success? What are the potential consequences of failing to do so?
What is the difference between accounting breakeven and cash flow breakeven analysis? Which is more important for a new venture and why?
(a) Write a sum formula for sin (u + v + w). (b) Write a sum formula for tan (u + v + w).
Reflect on your semester. How do you plan onmeasuringyour professionalgrowth in the future? What were the most challenging topics to you? What topics felt more intuitive/easy? How do you plan on...
Aside from shareholders, who do you believe is the second stakeholder in whose interests the company should be concerned? Justify your response What will you do to ensure the company's success...
a) What CSR did your organization do - how did it improve your organization's image? b) If your organization did not do any CSR, as the boss, what CSR activities would you suggest doing and why?
Do you believe NIL promotes "love of the game," or does it make college sports more about money and business? What are the most significant positive and negative effects of NIL, in your opinion? What...
Even well-managed organizations do not always work as efficiently and effectively as management would like. At Hewlett-Packard (HP), billions of dollars of product are being shipped - from computers...
At the Bank of California, past data show that 8% of all credit card holders default at some time in their lives. On one recent day, this bank issued 12 credit cards to new customers. Find the...
Banner Company acquires an 80% interest in Roller Company for $640,000 cash on January 1, 2013. The NCI has a fair value of $160,000. Any excess of cost over book value is attributed to goodwill. To...
Read the following and then answer the questions below:September 12: A Brisbane business offers by letter to sell 500 tyres to a New Zealand company. The Brisbane company does not specify a method of...
Fred returns home from work one day to discover his house surrounded by police. His wife is being held hostage and threatened by her captor. Fred pleads with the police to rescue her and offers...
Would like you to revisit one of these. Consideration must be clear and measurable.if you can't measure it then how can you show it has / has not been done?How can you sue someone for breach of...

Explain the difference between marginal and average contribution margins. Why is it important to distinguish between them

Question:

Step by Step Answer:

Preparing for potentially volatile productmarket success comes as a milestone for entrepreneurs as it features them to react appropriately to the situ...View the full answer

Entrepreneurial Finance Venture Capital Deal Structure And Valuation

Students also viewed these Business questions