Explain the difference between marginal and average contribution margins. Why is it important to distinguish between them

Question:

Explain the difference between marginal and average contribution margins.

Why is it important to distinguish between them when making operational decisions?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Entrepreneurial Finance Venture Capital Deal Structure And Valuation

ISBN: 9781503603219

2nd Edition

Authors: Janet Kiholm Smith, Richard L. Smith

See More Books

Question Posted: Apr 26, 2024 06:02 AM

See More Questions

1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
It is July 1, 2023, Jim and Pam Halpert have just left your office after their first interview with you. In preparation for the interview, you had sent them a list of the various documents that they...
Cutler Manufacturing manufactures and distributes specialty piping used in the construction industry. Due to the recent contraction in the commercial construction market, the company has had...
Match each component with the related definition by entering the appropriate letter in the space provided. Components Definitions --1. Investor information Web site............. A. Individual who...
Sim Corporation, a 90 percent-owned subsidiary of Pal Corporation, was acquired on January 1, 2011, at a price of $45,000 in excess of underlying book value. The excess was due to goodwill. Separate...
A propeller-driven airplane is traveling with a velocity $V_{1}=200 \mathrm{mph}(294 \mathrm{ft} / \mathrm{s})$. The propeller diameter is $10 \mathrm{ft}$ and it rotates at \(3000...
A hot fluid passes through circular channels of a cast iron platen (A) of thickness LA = 30 mm which is in poor contact with the cover plates (B) of thickness L B = 7.5 mm. The channels are of...
Observe one social studies and one ELA lesson in your mentor teacher's classroom. If social studies is not being taught, collaborate with your mentor to locate another classroom to observe. During...
Why is it important for an entrepreneur to plan for unexpected productmarket success? What are the potential consequences of failing to do so?
What is the difference between accounting breakeven and cash flow breakeven analysis? Which is more important for a new venture and why?
Explain how Archimedess principle can be used to measure a persons percentage body fat. Fat has a different density than other body tissue.
1. The derivative of f(x) = ex is: 2. The derivative of f (x) = 2 sinx is: 3. The derivative of f(x) = cos (x) is: 4. The function f (x) = is the derivative function of: 5. The derivative of f(x) =...
A colleague that is a regular on investing message boards recently commented that SunDoe Coffee stock will start paying dividends in the near future because of all of the cash flow that it generates....
Suppose a company purchased $1,200 of Supplies with cash but in error debited Equipment for $1,200. What is the entry required to reverse the original entry and then create the correct journal entry...
Calculate how much US exporters would receive or how much US importers would pay, ignoring the bank's commission, in which of the following situations. a) A US exporter receives a payment from a...
What is the journal entry when you take cash out of your company for personal uses?
Generalize Theorem 5-6 to the case of an oriented (n - 1) -dimensional manifold in Rn. The generalization is w Є A n-1(Mx) defined by
The following selected information was taken from Sun Valley Citys general fund statement of revenues, expenditures, and changes in fund balance for the year ended December 31, 2019: Revenues:...
What is international diversification? Discuss international investment strategies based on the textbook? What are the hedging strategies we can use to offset the currency risk involved in...
Analyze how the current healthcare financing system is affecting access to basic healthcare services, quality of care and well-being of the nation?
What qualities and characteristics do you think a good leader must possess?

Explain the difference between marginal and average contribution margins. Why is it important to distinguish between them

Question:

Step by Step Answer:

Preparing for potentially volatile productmarket success comes as a milestone for entrepreneurs as it features them to react appropriately to the situ...View the full answer

Entrepreneurial Finance Venture Capital Deal Structure And Valuation

Students also viewed these Business questions