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

Credit score model, The topic taken for this study is "FINANCIAL VIABILITY ... The topic taken for this study is "FINANCIAL VIABILITY OF X BY APPLYING CREDIT SCORE MODEL".  The study has attempted to analyze the financial viability of the company by applyi

THE CASE OF THE MISSING BONDS RATING, Three of these companies have bonds t... Three of these companies have bonds that carry investment - grade ratings. The other 3 companies carry junk - bond ratings. Judging by the information in the table, which 3 compani

Calculate break-even point and profit, Volpe Corporation produces class ri... Volpe Corporation produces class rings to sell to college and high school students. These rings sell for $75 each, and cost $30 each to produce. Volpe Corporation has fixed costs o

Significance of investment decisions, Significance of Investment Decisions ... Significance of Investment Decisions a) Such type of decisions is importance since they will influence the company's size or like fixed assets, retained and sales earnings.

Calculate the ex-right stock price, DIY Inc. plans to raise $200,000 with a... DIY Inc. plans to raise $200,000 with a right offering. The current stock price is $100 and there are 80,000 shares outstanding.  a. If DIY sets the subscription price to be $80

Option Pricing, Show that for any constant 0=a=1, C(aK1 + (1-a)K2) = aC(K1)... Show that for any constant 0=a=1, C(aK1 + (1-a)K2) = aC(K1) + (1-a)C(K2) where C(k) is the European option price with strike K. All the options in this question are assumed to be

Calculate average price-earnings ratio, Regan Inc., was founded nine years ... Regan Inc., was founded nine years ago by brother and sister Carrington and Genevieve Regan. The company manufactures and installs commercial heating, ventilation, and cooling (HVA

State the realised and expected return, State the Realised and Expected Ret... State the Realised and Expected Return Return is not as simple a notion as it appears to be as it's not guaranteed, it is mostly expected, and it may or may not be realized.

Drawback of stock repurchases, Drawback of Stock Repurchases 1. High ... Drawback of Stock Repurchases 1. High price A company may find it not easy to repurchase shares at their recent value and price paid may be higher to the detriment of rem

Example of sales method, Example of Sales Method The balance sheet of ... Example of Sales Method The balance sheet of XYZ Ltd as on date 31st December 2002 is as following:          Net fixed asset Current assets   F