AT&T 7996 11:07 AM ww3.capsim.com Margin Analysis Being able to calculate a healthy Margin Analysis will help the Research & Development Department understand how to change the cost of material and the Production Department understand how to change the cost of labor. You will need: The Production Analysis report (page 4) of the Capstone Courier for Round O The Segment Analysis reports (pages 5-9) of the Capstone Courier for Round O Determining Current Margin The above product details are for example only,. Your product names and data may differ, but the process to calculate margins is identical Useful formulas: Contribution Margin(S) Price (Material Cost + Labor Cost) Margin Percentage (%)-Contribution Margin/Price Calculating Margin Activity In the table below enter each product's price, material cost, and labor cost found in your report, and note whether or not a second shift was used (Y/NThen, use the values you entered to calculate the Contribution Margin and the Margin Percentage. Current Margin Second Material Labor Shift Contribution Contribution Product Name Price Cost Cost (Y/N) Margin($) Margin(%) 22.70 22.70 Traditional Daz 30 3.80 7.7 N 22.70 Del Dix Dot Low End 25 1 3030 High End AT&T 7996 11:07 AM ww3.capsim.com Margin Analysis Being able to calculate a healthy Margin Analysis will help the Research & Development Department understand how to change the cost of material and the Production Department understand how to change the cost of labor. You will need: The Production Analysis report (page 4) of the Capstone Courier for Round O The Segment Analysis reports (pages 5-9) of the Capstone Courier for Round O Determining Current Margin The above product details are for example only,. Your product names and data may differ, but the process to calculate margins is identical Useful formulas: Contribution Margin(S) Price (Material Cost + Labor Cost) Margin Percentage (%)-Contribution Margin/Price Calculating Margin Activity In the table below enter each product's price, material cost, and labor cost found in your report, and note whether or not a second shift was used (Y/NThen, use the values you entered to calculate the Contribution Margin and the Margin Percentage. Current Margin Second Material Labor Shift Contribution Contribution Product Name Price Cost Cost (Y/N) Margin($) Margin(%) 22.70 22.70 Traditional Daz 30 3.80 7.7 N 22.70 Del Dix Dot Low End 25 1 3030 High End