MKT-450 Lecture 15: Margin Analysis, Determining Current Margin, Determining Margin Potential, Consumer Report, Responsibilities of each job
15 Mar 2018
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Being able to calculate a healthy margin analysis will help the research & development. Department understand how to change the cost of material and the production department understand how to change the cost of labor. You will need: the production analysis report (page 4) of the capstone courier for round 0, the segment analysis reports (pages 5-9) of the capstone courier for round 0. Contribution margin($) = price -(material cost + labor cost) Finding the maximum amount of profit you can generate from one unit of a product is called margin. This is useful for a company when making a decision about whether to go into production or not. In its simplest form, you can calculate margin potential as: Use the information table below to find the maximum price that customers deem acceptable. You can find this in the customer buying criteria for each segment. Calculate the minimum material cost per segment using the following equation and table below:
