Contribution margin , Finance Basics

Contribution Margin

2264_Contribution Margin.png

The Average of the industry Contribution Margin (CM) was 15.40% for 2004, 14.39% for 2005, and 13.18% for 2006. The chart showed that Contribution Margin for the industry has declined; however, Lenovo's CM has been very steadily. It's showed that Lenovo got the stable suppliers and the well-developed distribution channels. On the other hand, Lenovo's Contribution Margin is lower than the CM of Dell and HP. (5) Therefore, Lenovo needs to learn how Dell and HP drove down the variable costs. ((See exhibit ratios)

 

Posted Date: 4/1/2013 2:30:05 AM | Location : United States







Related Discussions:- Contribution margin , Assignment Help, Ask Question on Contribution margin , Get Answer, Expert's Help, Contribution margin Discussions

Write discussion on Contribution margin
Your posts are moderated
Related Questions
We have 10.000 genes and 4.000 of them are annotated for a certain attribute of interest. a. If we have a single set of 10 genes, how many of them should be annotated to be cons

Important Points for Capital Market Authority Apart from the above roles, CMA can assume the given steps to encourage progress of stock exchanges in US or other countries.

Example of Valuation of Bonds and Debentures K is contemplating purchasing a 3 year bond worth 40,000/= carrying a nominal coupon rate of interest of 10 percent.  K necessary

Example of Capital Structure of a Company Example Company XYZ restricted has the given capital structure as:   10,000 Sh.10 ordinary shares 10,000

For any company that is quoted on the London Stock Market, you are required to write a report to existing shareholders on any TWO of the following issues. Each answer carries equal

Question: Company XYZ currently operates a General Insurance company and would like to start selling life insurance products. The intended market is composed of both financial

Using the data provided in Appendix 1 prepare an analysis for the attention of the directors of Meridian Ltd. The analysis should highlight the strategic differences between the co

Role of Stock Exchange in Economic Development The Roles of Stock Exchange in Economic Development are as follow: 1. Raising Capital for Businesses The Stock Exchange

The following NPV's have been calculated to determine if a compressor installation should be accelerated from Year 3 to Year 7. The compressor cost is $1,500,000.   a. C

Head Office and Branch or Subsidiary MNC has diverse operations set up in dissimilar geographical locations. The HQ acts like the principal and the subsidiary like an agent he