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Topic: Contribution margin analysis

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	Contribution Margin & Direct Costing Articles
		Contribution margin analysis: No longer relevant/strategic cost management: The new paradigm.
		Horngren, C. contribution margin approach to the analysis of capacity utilization.
		Shwayder, K. note on a contribution margin approach to the analysis of capacity utilization.
	maaw.info /CMArticles.htm (1500 words)

	Contribution margin analysis: a case study - Financial Manager's Notebook Healthcare Financial Management - Find ...
		One way to determine which configuration of beds makes the most financial sense is to compare the contribution margins of each scenario to see which makes the larger contribution toward covering the hospital's overhead.
		Contribution margin is the difference between the direct net revenues of a program and its direct expenses, prior to the allocation of overhead expenses.
		Calculating the contribution margin of a program is easiest when a hospital has in place a reliable cost-accounting system that calculates the direct cost of treating patients from a specific unit or in a specified diagnosis-related group or major diagnostic category.
	findarticles.com /p/articles/mi_m3257/is_n6_v47/ai_14333917 (903 words)

	Contribution Margin & Direct Costing Articles
		A dynamic programming approach to the analysis of different costing methods in accounting for inventories.
		Horngren, C. contribution margin approach to the analysis of capacity utilization.
		Shwayder, K. note on a contribution margin approach to the analysis of capacity utilization.
	www.maaw.info /CMArticles.htm (1500 words)

	An Application Of The Theory Of Constraints
		Exhibit 1 illustrates the contribution margin (throughput per dozen) for the five most popular flies constructed by the Daufel brothers.
		They also knew it had the lower contribution margin, so they were not surprised when the results indicated it had the lowest throughput per labor hour.
		The Compara Dun, which has the highest contribution margin, ranked next to last based on throughput per labor hour because it required the second highest amount of the brothers' time.
	www.nysscpa.org /cpajournal/1999/0499/Departments/D530499.HTM (1475 words)

	Bloomberg.com: Financial Glossary
		The margin is the difference between the market value of a stock and the loan a broker makes.
		The loan in the margin account is collateralized by the stock; if the value of the stock drops sufficiently, the owner will be asked to either put in more cash, or sell a portion of the stock.
		Margin rules are federally regulated, but margin requirements and interest may vary among broker/dealers.
	www.bloomberg.com /analysis/glossary/bfglosm.htm (6407 words)

	MANAGERIAL ACCOUNTING
		An income statement presenting the contribution margin by sales territories is often useful to management in evaluating past performance and in directing future sales efforts.
		The contribution margin for each territory consists of the sales less the variable costs associated with producing and selling products in each territory.
		The contribution margin report for service firms can be prepared to evaluate the contribution margin of market segments.
	www.sjrcc.cc.fl.us /faculty/hinton/man19.html (1451 words)

	CompuEx - Category M (Site not responding. Last check: )
		is the process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of financial information used by management to plan, evaluate, and control within an organization and to assure appropriate use of and accountability for its resources.
		The margin is the difference between the market value of a stock/asset and the loan a broker/banker makes.
		MARGIN ACCOUNT (Stocks) is a leverageable account in which stocks can be purchased for a combination of cash and a loan.
	www.compu-ex.com /default.asp?action=category&ID=223 (2584 words)

	Contribution Margins
		One of the important, yet relatively simple, tools afforded by cost/volume/profit analysis is known as contribution margin analysis.
		Your company's contribution margin is simply the percentage of each sales dollar that remains after the variable costs are subtracted.
		Contribution format income statements can be drawn up with data from more than one year's income statements, if you're interested in tracking your contribution margins over time.
	www.zionsbank.sbresources.com /SBR_template.cfm?docNumber=P06_7520.htm (309 words)

	Cost Behavior and CVP Analysis
		Once variable and fixed costs are isolated, a contribution margin income statement can be prepared in which total and per unit contribution margin can be analyzed.
		Then meaningful "what if" analysis can be done such as trading off variable costs for fixed costs, increasing fixed costs and expected volume, reducing price and studying the impact on sales volume and profits, etc. Carefully study the basics of cost-volume-profit analysis on Pages 231-239.
		Note that the contribution margin of the Le Louvre CD is 25% whereas the contribution margin of the Le Vin CD is 50%.
	northonline.sccd.ctc.edu /pbouker/ACC230_Folder/Chapter06_LecturesNotes.htm (684 words)

	Contribution Margins
		Your company's contribution margin is simply the percentage of each sales dollar that remains after the variable costs are subtracted.
		When you know the contribution margin, you can make better decisions about whether to add or subtract a product line, about how to price your product or service, and about how to structure any sales commissions or bonuses.
		Contribution format income statements can be drawn up with data from more than one year's income statements, if you're interested in tracking your contribution margins over time.
	www.uschamber.com /sb/business/P06/P06_7520.asp (337 words)

	CCH Business Owner's Toolkit \| Contribution Margins
		Your company's contribution margin is simply the percentage of each sales dollar that remains after the variable costs are subtracted.
		When you know the contribution margin, you can make better decisions about whether to add or subtract a product line, about how to price your product or service, and about how to structure any sales commissions or bonuses.
		Contribution format income statements can be drawn up with data from more than one year's income statements, if you're interested in tracking your contribution margins over time.
	www.toolkit.cch.com /text/P06_7520.asp (363 words)

	Accounting Terms-Accounting Dictionary-Accounting Glossary
		Such contributions are normally associated with the contributing entity receiving equity interest (in a commercial exchange) or tax relief (in a charitable donation) in recognition of the value for those contributed assets.
		CONTRIBUTED SURPLUS is money a company receives by selling shares above par value or their stated value, or from government donation of land to the company, etc. Contributed Surplus is a balance sheet item that is part of the shareholders’ equity.
		Controllable margin is considered to be the best measure of a manager's performance in efforts to control revenues and costs.
	www.ventureline.com /glossary_C.asp (12227 words)

	Analyzing Contribution Margin on BNET
		“Contribution margin” means the sales revenue that remains after variable costs (like the cost of goods, sales commissions and delivery charges) have been deducted.
		For contribution margin analysis to be meaningful, all variable costs must be accounted for, including direct costs like labor and materials, and the indirect costs of services.
		Contribution margin analysis is not a particularly sophisticated tool.
	www.bnet.com /2410-13240_23-58820.html (482 words)

	analysis Resources on BNET
		Show All Related Tags Did you mean SWOT analysis (87 results), risk analysis (43 results), financial analysis (32 results), data analysis (29 results), statistical analysis (28 results)more...
		Show Fewer Related Tags Did you mean SWOT analysis (87 results), risk analysis (43 results), financial analysis (32 results), data analysis (29 results), statistical analysis (28 results), quantitative analysis (15 results), strategic analysis (12 results), gap analysis (11 results), decision analysis (11 results), pest analysis (1 results)fewer...
		The contribution margin is found by subtracting all variable costs from revenue (sales).
	search.bnet.com /search/analysis.html (1404 words)

	SIV.AG kVASy-Contribution Margin Analysis
		The determination of contribution margins using existing data stocks serves as the basis for exact and competitive price calculation.
		By means of the projection of revenues and of the assigned costs, a probable contribution margin for constant factors can be determined.
		There are two approaches available for the determination of the contribution margin: in the energy cost approach, all energy costs are included in Contribution Margin I, and all service costs are included in Contribution Margin II.
	www2.siv.de /_cache/cms_106611.html (489 words)

	Financial statement analysis & financial ratio analysis software
		These financial ratios, charts and explanations enable quick decisions to be made from the financial statement information.
		CLO-15 financial statement ratio analysis for Commercial Loan Officers.
		See our financial statement ratio analysis spreadsheets which calculate more ratios (35 ratios, 50, 70 monthly or annual ratios, 75, 100, 125 and 150 ratios calculation spreadsheets available.
	www.bizwiz.ca /ratios.htm (924 words)

	Impact Analysis
		The chemicals providing the largest contribution to total estimated cancer risks in the U.S. were benzene, butadiene, formaldehyde, dioxins and chloroform.
		Mobile sources (cars and trucks) are a large part of the emissions of benzene, butadiene and formaldehyde into the air.
		They contribute to the erosion of tooth enamal and dental caries.
	impact_analysis.blogspot.com (4167 words)

	Accountancy Students Article: Boost Profits With Excel
		We know from the previous analysis that sauces are the most profitable products when considering contribution margin and time utilization; hence Southern meets the market-share limitation for that product.
		While sauces’ contribution margin is 64% of casseroles’ contribution margin ($14/$22), sauces use only 40% of the machine time used by casseroles (12 minutes/30 minutes) and 50% of the labor time (20 minutes/40 minutes).
		Similarly, sauces’ contribution margin is 78% of soups’ contribution margin ($14/$18), but use only 60% of the machine time (12 minutes/20 minutes) and 63% of the labor time (20 minutes/32 minutes).
	www.accountancy.com.pk /articles_students.asp?id=137 (1886 words)

	INFORMATIONWEEK REPRINT
		For nearly two years, the company struggled to extract information for sales and profit-margin-contribution analysis from legacy IT systems, which eventually were replaced with SAP enterprise-resource-planning applications.
		Margin Minder also helps managers identify products that don’t contribute enough to the bottom line and should be discontinued.
		Margin Minder is looped into this system because it’s capable of analyzing sales by customer, address, and ZIP code.
	www.acumeninfo.com /eprints/6032salient.html?clientId=erights (555 words)

	macs Software Drives Organizational Profitability with Oracle(R) E-Business Suite
		Contribution margin is the difference between net sales revenue and variable costs.
		The depth of the customer contribution margin statement is expanded by macs Software's ability to associate customer service costs like freight, rebates, commissions, cost of holding inventory, claims, and customer- specific R&D directly to a customer.
		Variance analysis comparing actual costs to a flexed standard (flexible budget) provides a higher quality of performance evaluation than merely comparing actual costs to a static budget.
	www.prnewswire.com /cgi-bin/stories.pl?ACCT=109&STORY=/www/story/10-23-2006/0004457064&EDATE= (1023 words)

	Contribution margin analysis (Site not responding. Last check: )
		Contribution margin analysis is a technique used in brand marketing and product management to help a company decide what product(s) to add to its product portfolio.
		The manager asks what will happen to profits if a new product is added or an existing product is discontinued.
		It uses material from the Wiktionary page "Analysis".
	www.serebella.com /encyclopedia/article-Contribution_margin_analysis.html (225 words)

	International MBA Program - Courses
		An introduction to multivariate analysis is provided, which includes analysis of variance and regression methods.
		The theoretical and research contribution of the behavioral sciences to management and administration are examined and applied to selected organizational situations.
		Analysis of the relationship between law and business with emphasis on the ability of, and extent to which, governments regulate business activities.
	www.umsl.edu /divisions/business/imba/courses.html (1268 words)

	Spreadware 's Beyond Breakeven Overview
		Under certain revenue and cost situations, fixed costs are preferable to variable costs, because greater profitability can be achieved at the margin, but if revenue levels are not achieved to capture the fixed costs, then variable costs may be preferable because of greater flexibility.
		Contribution Margin determines how much revenue a unit of each item - of which 200 can be modeled - will contribute to overhead and profit, while the Expense Ratio breaks down and charts expenses.
		Complete analysis of models, including expense breakdown, contribution margin analysis and individual margin analysis.
	spreadware.com /finfiles/301.html (951 words)

	TMs C 7 (Site not responding. Last check: )
		A contribution income statement is very useful in CVP analysis since it highlights cost behavior.
		Contribution income statements are given on this and the following transparency for monthly sales of 1, 2, 400, and 401 bikes.
		The CM ratio shows how the contribution margin will be affected by a given change in total sales.
	webpages.marshall.edu /~jakubowski/cvpanalysis.html (750 words)

	Budgeting Links
		Breakeven Analysis – CCH Business Owner’s Toolkit -- A second tool for management decisionmaking that has grown out of cost/volume/profit analysis is breakeven analysis.
		The HBS Toolkit: Break-Even Analysis – HBS Working Knowledge – Marketers studying the launch of a new product or service use break-even analysis to help determine at what point the product or service can be expected to be profitable.
		Contribution Margins – CCH Business Owner’s Toolkit -- One of the important, yet relatively simple, tools afforded by cost/volume/profit analysis is known as contribution margin analysis.
	www.agmrc.org /agmrc/business/operatingbusiness/budgetinglinks.htm (591 words)

	Incremental Analysis Quiz #1
		In fact, the contribution from alternative 2 is incrementally greater than that from alternative 1.
		Since the contribution from the sales to Spencer's is only $13.50/unit, Charlie would have to sell 8 more units [for a total of 10] to Spencer's in order to breakeven if he sells only 2 to the regular dealer and 1 through private sale.
		This little exercise illustrates the dramatic impact that a major change in the contribution margin can have on profitability.
	www.plu.edu /~mgtacctg/incremental_analysis_quiz_.htm (350 words)

	Marketing Tools (Site not responding. Last check: )
		Gross profit margin reflects the effectiveness of pricing policy and of production efficiency (that is, how well the purchase or production cost of goods is controlled).
		Profit margin on sales provides limited information since it mixes the effectiveness of sales in producing profits (reflected by the net operating margin) with the effects of the method of financing on profits (since net income is after deduction of interest on debt and of taxes, which are affected by interest).
		To aid in this process, SWOT analysis was designed to direct the firm to objectively analyze its situation, factors, and position.
	users.anderson.edu /~mlbruce/AnalysisTools.htm (1332 words)

	Contribution Analysis for Direct Marketers
		(Multichannel Merchant) Contribution analysis is one of the foundations for many of the other types of analyses (list response, customer lifetime value, and square-inch analysis, to name just a few) that successful catalogers use to better understand how to profitably grow their businesses.
		One of the first steps in a contribution analysis is to combine information from your profit and loss statement with the end-of-season key code report you run from your mail order processing system.
		The number you need to derive from your P&L is what is commonly called the contribution margin (contribution to overhead or fixed operating expenses and profit).
	chiefmarketer.com /crm_loop/contribution-analysis-071206 (435 words)

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