Comment: It is possible for an established organization to change their contribution margin. Changing the price of the product, the cost of the product, or the mix of products that the company sells can do this. If an organization has below average break-even sales over an extended period of time, it will eventually go out of business. This is because the organization will not be making enough money to cover their costs, and they will eventually run out of money.

Assignment: I wanted to come back to your comment above that focuses on the methods by which organizations may elect to adjust contribution margins. Are there instances in which one change may then have a countereffect on another variable, and if so, how can a company be aware of this and make final decisions? Can you think of any products, services, industries, etc. that may face this more commonly than others?