Give opinion: Managers must make critical economic decisions every day, such as whether to make or buy their products, if they should take or leave an offer on the table, or between different projects to determine which is more profitable. Contribution analysis is a cost-benefit method of decision making that evaluates the financial contribution of each decision to an organization's profit and overhead (after covering the variable costs involved) by estimating the incremental costs and revenues involved, performed with the goal of profit-maximization. When deciding the overall contribution of each potential choice, it is crucial to consider all of the costs and revenues involved (but only those that vary as a result of the decision). Therefore, contribution analysis ignores fixed overhead costs since managers are only concerned if the decision increases profit (or not) and by how much. Then, a sensitivity analysis of the resulting conclusion can measure how much the overhead could change without altering the decision made

Home Homework: HW4: Chapter 3 Score: 0 of 1 pt 11 of 25 (15 complete) HW Score: 29.33%, 7 Until y 3.3.15 Questic Graph the given function. Give the intercepts and state the range y = [(x)= - 2x - 6x Use the graphing tool to graph the function. Worke ent Soo Click to enlarge ipts graph estion lestion estion estion estion estion estion Click the graph, choose a tool in the palette and follow the instructions to create your graph 2 parts remaining Clear All Check AnswerHomework Chapter 1 Name MATCHING What a society can produce. More production to satisfy wants and Match the key terms with the descriptions. needs. The process of thinking things Things people buy. through before making a decision. What can be fulfilled by acquiring KEY TERMS goods and services. 1. Capital (capital goods) People working. 2. Command dictatorship economy Tools and equipment used for production. 3. Cost-benefit analysis Funds to acquire capital goods. 4. Economic growth Risk taking. 5. Efficiency Goal of a business. 6. Entrepreneurship The transformation process. 7. Financial capital Maximum output at lowest cost. 8. Goods and services Application of knowledge. 9. Labor Limited resources unlimited wants and 10. Marginal benefit (MB) needs. 11. Marginal cost (MC) Evaluation of whether or not to take 12. Market capitalist economy the next step. 13. Opportunity cost Cost of taking the next step. 14. Private property Benefit of taking the next step. 15. Production Alternative foregone when you make 16. Production possibilities a decision. 17. Making profit Consumer decides what gets produced. 18. Rational action blucarsfrail a Decisions are made by the ruling elite. 19. Scarcity on to sabusedshow of prlingual Individual ownership of farms, facto- 20. Technology ries and homes. 21. The "Invisible Hand" Description of how self-interested 22. Wants and needs. activity benefits society by Adam Smith. her word or golog mom alyA Moving to another question will save this response. Question 3 The term differential cost refers to: A cost which continues to be incurred even though there is no activity. A cost which does not involve any dollar outlay but which is relevant to the decision-making process. A difference in cost which results from selecting one alternative instead of another. The benefit forgone by selecting one alternative instead of another. 1 Moving to another question will save this response.( a ) A wealthy graduate of a University wishes to create a scholarship that lasts "forever"? It will yield 10,000 a year to an appropriate student. The interest that can be obtained on the initial endowment is 6% per year. What initial investment is required to create this fund