HTM 2030 Lecture Notes - Lecture 6: Contribution Margin, Preposition And Postposition, Variable Cost
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I. e. c goes up or s goes down c% goes up) High value preposition e. g. burger is pricier than others but with bigger portion. C goes down as s stay the same or c stay the same as s goes up--greater profit. Lower value preposition (could be unless owner shops better to get good quality and quantity at cheaper $) E. g. us portion size is huge/cheesecake factory in chicago, Murray"s 14 inches oval plate cheesecake for . 95. Increase perceived value vs food waste decrease owners" value. Context and execution are critical to judging the relationship between cost, business, and profit as either good or bad 1 ounce in 16 pounds e. g. burger king selling . 5 pound burger, which is same price as regular burger but twice the portion therefore a bigger value preposition willingness and ability of customers to buy more. The impact of lowering costs of the quality of good, beverage and service.