Margin AnalysiS Being able to calculate a healthy Margin Analysis will help the Research & Development Department understand how to change the cost of material and the Production Department understand how to change the cost of labor. You will need: The Production Analysis report (page 4) of the Capstone Courier for Round 0 .The Segment Analysis reports (pages 5-9) of the Capstone Courier for Round Determining Current Margin Shift Auto Unit Units Inven & mation Capacity Primary Pfmn Size Material Labr Contr Next Plant Trad 11/21/2010 3.1 17500 5.5 14.5 $28.00 $11.59 $7.49 29% 0% 4.6 14000 3.0 17.0 $21.00 1.7 23000 8.0 2.0 S38.00 $ 2.5 25000 9.4 15.5 $33.00 $15.87 $8.57 23% 0% 26 19000 4.0 11.0 $33.00 $13.62 $8.57 30% 0% 999 189 1,800 66% 1,400 129% 900 45% 600 73% 600 63% Able 1,763 5.0 3.0 3.0 3.0 $7.81 15.98 $7.12 $8.57 27% 33% 30% 0% Adam Aft Agape Size 4/18/2012 6/30/2011 5/25/2011 78 314 The above product details are for example only. Your product names and data may differ, but the process to calculate margins is identical Useful formulas Contribution Margin(S) Price - (Material CostLabor Cost) Margin Percentage (%)-Contribution Margin/Price