EXAMINING THE OPTIONS FOR INCREASING CONTRIBUTION to profit

Example $1$

Fisher Technologies is a small firm that must double its dollar contribution to fixed cost and profit in order to be profitable enough to purchase the next generation of production equipment. Management has determined that if the firm fails to increase contribution, its bank will not make the loan and the equipment cannot be purchased. If the firm cannot purchase the equipment, the limitations of the old equipment will force Fisher Tech to go out of business and, in doing so$,$ put its employees out of work and discontinue producing goods and services for its customers.

$16$

BITS Pilani, Pilani Campus