Question

The advantages of calculating Contribution Margins of a company’s products seem to be overwhelming according to the author. One can quickly calculate their break-even point and evaluate pricing changes and product quality improvements. But after reviewing several annual reports, apparently no one is using this technique. What’s missing in this analysis?

Answer 1

Is this real, I came across many situations where companies are no more interested in calculating there break even and also there contribution margin, they are solely intended to compete in this competitive world to survive rather than to earn contribution since many days of my observation.

Present world od commerce has become very much competitive so that it became very much difficult for organisations in mere survival than to be able to earn huge returns, so they are focusing more on competition than on traditional methods of forecasting revenue to break even and to earn huge contributions