Contribution Margin

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

Ask an Expert

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

Write your message here..

Related Questions

Student, Intercontinental Baseball Manufacturers (IBM) has an outstanding b... Intercontinental Baseball Manufacturers (IBM) has an outstanding bond with a $1,000 face value that matures in 10 years. The bond, which pays $25 interest every six months ($50 per

Disadvantage of joint stock companies, Disadvantage of Joint Stock Companie... Disadvantage of Joint Stock Companies Difficult to reconstruct the capital Many formalities in forming the company Heavy initial capital outlay. Loss of secrec

WACC, #The following is the existing capital structure of Company XYZ Ltd. ... #The following is the existing capital structure of Company XYZ Ltd. Ordinary shares at Shs.10 par 1,000,000 Retained 800,000 12% preference shares Shs.10 par 400,000 16% loan Shs.

Healthcare Finance, If Metropolis Healthcare Systems have 1,150,000 in cash... If Metropolis Healthcare Systems have 1,150,000 in cash. How long will it take them to accumulate 2,000,000 in cash? Assume an interest rate of 5%..

Factors to increasing the profitability of a business, Factors contribute t... Factors contribute to increasing the profitability of a business Several other factors contribute to increasing the profitability of a business. For companies that are highly d

Management of company and directors, Management of company and Directors ... Management of company and Directors They will consequently be interest in as: a) In generating profits efficiency of the company b) The company's capability to generate

Assignment, Discuss the applicabilty of such cycle to poultry business(cons... Discuss the applicabilty of such cycle to poultry business(consider broilers)

Prepare a cash flow statement , Q1.  A local delivery company has purchased... Q1.  A local delivery company has purchased a delivery truck for $15,000.  The truck will be depreciated under MACRS as a five year property.  The trucks market value (salvage valu

Necessity of risk adjusted hurdle rates for companies, Discuss the necessit... Discuss the necessity of risk adjusted hurdle rates for companies with diverse lines of business. Every company invests in new projects based on the expectation of earnings

Control of pattern formation, Control of Pattern Formation Limbs such... Control of Pattern Formation Limbs such as all other organs have a pattern. What factor (or factors), environmental affects etc. are responsible for specific positioning of i