Question
Each company decides to accept a special order for 50% less the contribution margin (with adequate capacity). What is the net advantage (disadvantage) of accepting
Each company decides to accept a special order for 50% less the contribution margin (with adequate capacity). What is the net advantage (disadvantage) of accepting the special order?
Contribution Margin = Revenue - Variable Cost
Contribution Margin Ratio = (Revenue - Variable Cost) / Total Revenues
Walmart Contribution Margin of 547B = Revenue 572B - 25B Operating Expenses
Walmart Contribution Margin Ratio 96% = (Total Revenue 572B - 25B Operating Expenses) / 572B Total Revenue
Target Contribution Margin of= Revenue 106B - 75B Operating Expenses
Target Contribution Margin Ratio = (Total Revenue 106B - 75B Operating Expenses) / 106B Total Revenue
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