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
Profitability in relation to investment - Profitability Ratio a) Return on Investment (ROI) or return on total asset (ROTA) = (Net profit/ Total asset) x 100 The ratio i

Working Capital Cycle The Concept of Working Capital/Cash Operating Cycle Working capital cycle refers to period such elapses between the payment for raw materials bought

Disadvantages of Floatation of New Shares 1. The cost of getting a quotation is high, mainly when a new issue of shares is completed and the company is small. It means that su

I need help with : an introduction to financial markets and institutions , 2 edition , brown, nesiba, burton

Problem: (a) Describe why a critical analysis of the following is important while reading a research article: (i) The author, (ii) The date of publication. (b) What do

Inventory Management - Supply Chain Management Determination of the best ordering policy in a manufacturing organisation In a manufacturing organisation, procurement may ha

i have the information given but i am having trouble getting the income statement done correctly

Define New Issue Market New Issue Market OR Primary Market New issue market is the segment in which new issues are made.

Bell is considering two marketing options for the Canadian launch of their internet-based video streaming service in the first quarter of 2012.   i. A  "soft" launch using prima

1-Suppose you deposit $ 5 000 in the bank. How much can you raise after 10 years when discount rate is 5% for the first four years and then rises to 7% annually? 2 -A used car co