Question: As a manager, one good way to keep your contribution margin high on the products you sell may be to Threaten your vendors if they


As a manager, one good way to keep your contribution margin high on the products you sell may be to Threaten your vendors if they try to raise the prices. Immediately take production overseas to reduce your costs. Keep seeking competitive bids on your components. Previous Next An increase in the cost of rent can be offset by: Immediately raise prices to cover the increase. Working to reduce other fixed expenses such as utilities and telephone. Immediately move to a cheaper facility Previous Next When two components of the CVP change at the same time it will: Be a negative change for the company since changes in costs always create a lower net profit Net profit will be unaffected since two changes are happening at the same time. Be a positive or negative situation for the company depending on the direction of the change Previous Next
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