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Think of a company, either that you like or that you want to own and operate. Think of three (or more) products they would sell.

Think of a company, either that you like or that you want to own and operate. Think of three (or more) products they would sell. Estimate the sales price per unit and the variable costs per unit of the product and arrive at a contribution margin per unit. Remember that Variable costs are things like direct materials, direct labor, variable selling expenses, etc. Now compare the three products you've selected, and tell us which ones you'd promote. I'd calculate the break-even sales or a target profit for each product to help determine which to promote. However, even if a certain product has a higher contribution margin, you may not be able to sell or promote them as much because based on your estimation there simply isn't that big a market for that product. Play around with your choices and really think of this as if you were a manager or owner of a business. This is your opportunity to relate what we're learning in class to the real world.

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