Question
Refer to the manufacturing company you selected for the Unit 2 Discussion and explain how you would determine the companys contribution margin and contribution margin
Refer to the manufacturing company you selected for the Unit 2 Discussion and explain how you would determine the companys contribution margin and contribution margin percent. In your initial post include the following:
- Identify which specific variables should be included in the calculation.
- Illustrate your explanation by calculating the contribution margin and contribution margin percent using hypothetical values.
- Explain what your calculated results tell you about the companys sales and cost structure
Regarding to the above question. I have already came up with hypothetical values and calculated the contribution margin and contribution margin percent, the question that I have stuck in " what your calculated results tell you about the companys sales and cost structure"., and what is the specific variable costs?
The selected company is beverage and food manufacture which has around $ 5000,000 sale/Revenue, $3,000,000 variable costs and 200,000 fixed costs.
Thank you in advance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started