Business Administration 2257 Study Guide - Final Guide: Weighted Arithmetic Mean, Fixed Cost, Woodchips

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Milford Green

Document Summary

Role: it"s march 2001 jim graham, president of try in london a recycling company. Decision: whether to sell products through a fundraising initiative (grow green. This involved approaching organizations taking part in fundraising activities to determine if they would be interested in selling try"s gardening products through a fundraising activity. Goal: increase sales and exposure in the community; decide if program is suitable, and if yes, which organization to partner with. P: try is an established business, operating since 1991 (now 2001) Calculate the contribution margin rate for each product for the participating organizations. Wholesale var cost expected % units sold compost mulch two-way topsoil tri-mix topsoil landscape woodchips. 20% (*currently no one buys at wholesale prices, but would be considered in future for large orders) 25 landscape woodchips: calculate the weighted average contribution margin rate for all five products for try and for participating organizations. Weighted average contribution margin =(contribution margin rate, product 1)