Contribution margin , Finance Basics

Assignment Help:

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)

 


Related Discussions:- Contribution margin

Bonferronis approach, We have 10.000 genes and 4.000 of them are annotated ...

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

Financial planning processes, explain the financial planning process in a p...

explain the financial planning process in a private limited company

Operations Management, You need cash and FAST! You jump out of your car at...

You need cash and FAST! You jump out of your car at a location known to have one ATM, but a history of a line. Usually you can expect to wait 200 seconds from the time you arrive

the trade-off theory of capital structure, Please describe the trade-off t...

Please describe the trade-off theory of capital structure and how it vary from the Modigliani and Miller theorem with taxes.

Advantages of using debt finance, Advantages of Using Debt Finance ...

Advantages of Using Debt Finance Interest on debt is a tax permit able expense and as that it is reduced via the tax allowance. The cost of debt is fixed regardless of

Example of valuation of bonds and debentures, Example of Valuation of Bonds...

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

Illustrate in brief about the investment process, Illustrate in brief abou...

Illustrate in brief about the Investment  Process A  typical  investment  decision  undergoes  a  five  step  procedure which, in turn, forms the foundation of investment pr

Plastic money or credit card finance, Plastic Money or Credit Card Finance ...

Plastic Money or Credit Card Finance This is finance of a kind whereby a company will make arrangements for the use of the services of credit card organizations via the purcha

Dividend ratios, Dividend Ratios 1. Dividend per shares (DPS) = Earn...

Dividend Ratios 1. Dividend per shares (DPS) = Earnings to ordinary shareholders/ Number of ordinary shares Specify cash returns received for all share holders. 2. Di

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd