Question: As a manager making a decision, which is likely more important: gross margin or contribution margin ? Why?

As a manager making a decision, which is likely more important: gross margin or contribution margin? Why?

Step by Step Solution

★★★★★

3.36 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Contribution margin is likely to be more important because it ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

269-B-M-A-C-B (680).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Q:

Have a look at Unilever's Sustainable Living Plan. Before reading chapters 7& 8, were you aware of this initiative? Does it change your impression of Unilever at all? Is this plan CSR, or strategy,...

Q:

Which are more important in decision making: quantitative or qualitative factors? Why? How can qualitative factors be explicitly considered in making a decision?

Q:

Why is the contribution margin an important concept for incremental decision making?

Q:

To a manager making a decision, which is likely more important: gross margin or contribution margin? Why?

Q:

Section - A (6 X 0.5 = 3 Marks) Match the following table: Book value of old machine Choose... Sales price - Cost of goods sold = Choose... Contribution margin Sales - Variable cost - Fixed cost =...

Q:

What is unique about managing a cooperative? A cooperative manager rarely interacts with the firm's owners Cooperative management requires more emphasis on communication because the manager has...

Q:

The Concepts Of Gross Margin And Contribution Margins Are Two Important Measures Companies ... Your question has been answered Let us know if you got a helpful answer. Rate this answer Question: The...

Q:

Go to www.YouTube.com and search for How It's Made, a television show produced by the Discovery Channel that shows how thousands of products and services are created. Find a product that interests...

Q:

Gross margin and contribution margins are two important, yet separate measures companies can use to determine how profitable their operations are. Gross margin is revenue minus total cost of the...

Q:

Administrative agencies also issue _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ that are not legally binding, but simply indicate how an agency plans to interpret and enforce its statutory authority....

Q:

Imagine that you are to design a budget report for a colleague at work using a spreadsheet package. describe the principle you would consider to design a prototype of this report. Explain. Initial...

Q:

If you were to pay $1,000 for an art appreciation course that is expected to give you $200 per year in enjoyable benefits for 30 years and your opportunity cost of capital is 10 percent, what is the...

Q:

In reference to the equation , the value 0 . 1 0 is the expected change in Y per unit change in X . Group of answer choices False True

Q:

Buff Co. is considering replacing an old machine with a new machine. Which of the following items is economically relevant to Buffs decision? (Ignore income tax considerations.) Carrying amount of...

Q:

Enviro Corporation manufactures a special liquid cleaner at its Green plant. Operating data for June follow: Materials . . . . . . . . . . . . . . . . . . . $714,000 Labor . . . . . . . . . . . . . ....

Q:

Big City Bank processes the checks its customers write at Riverdale Operations Center (ROC). ROC processed 2,800,000 checks in September. It takes only seconds to process a check, so none are left...

Q:

Big City Bank processes the checks its customers write at Riverdale Operations Center (ROC). ROC processed 2,800,000 checks in September. It takes only seconds to process a check, so none are left...

Q:

What is that answer? This Question: 1 pt 4 of 10 (0 con Evaluate the formula E = z P ( 1 - P ) n for z = 2.575829, p = 0.611, and n =926. E= (Round to three decimal places as needed.) tents ccess a...

Q:

Example Closed mortgage with prepayment privileges Home price = 125,000 Down payment 25,000 Conventional mortgage = 100,000 3 years term 8% per annum Amortization period of 25 years Closed mortgage...

Q:

Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $25.00 million. The plant...