how might a company with a negative contribution margin reach the break-even point?

Answers

Answer 1

A company with a negative contribution margin can only reach the break-even point by reducing fixed costs or increasing selling prices or unit volumes.

A company with a negative contribution margin might reach the break-even point by:
Increasing selling prices:

By raising the prices of products or services, the company can increase its contribution margin, which is the difference between the selling price and the variable cost per unit.

This will help the company generate more revenue per unit sold.
Reducing variable costs:

Another way to improve the contribution margin is to reduce the variable costs associated with producing each unit. This can be done through more efficient manufacturing processes, bulk purchasing of raw materials, or negotiating better deals with suppliers.

Adjusting the product mix:

The company can evaluate its product mix and focus on promoting or producing products with higher contribution margins.

By doing this, the company can increase the overall contribution margin of its products, bringing it closer to the break-even point.

Increasing sales volume:

By increasing sales volume, the company can potentially increase its total contribution margin, helping to offset the negative contribution margin.

This can be done through marketing efforts, promotions, and improving customer retention.
Reducing fixed costs:

While not directly related to the contribution margin, reducing fixed costs will lower the break-even point.

This can be achieved by optimizing operations, reducing overhead expenses, or renegotiating contracts with vendors and service providers.
By implementing these strategies, a company with a negative contribution margin can work towards reaching the break-even point and eventually achieve profitability.

For similar question on selling prices.

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Answer 2

If a company has a negative contribution margin, it means that the cost of producing and selling their products or services is higher than the revenue they generate from sales.

To reach the break-even point, the company needs to either increase its revenue or decrease its costs. One option is to increase the price of its products or services, which would result in higher revenue. However, this could also potentially reduce demand and result in fewer sales. Another option is to lower the cost of production by renegotiating supplier contracts, reducing overhead expenses, or improving production efficiency. Ultimately, a company with a negative contribution margin needs to carefully analyze its costs and revenue streams and make strategic decisions to improve its financial performance.
A company with a negative contribution margin faces a challenging situation. To reach the break-even point, the company must increase its contribution margin to cover fixed costs. This can be done by:

1) increasing product prices to generate higher revenue per unit.

2) reducing variable costs, such as production or labor expenses, to improve the margin.

3) focusing on high-margin products or services to enhance overall profitability.

4) increasing sales volume to dilute fixed costs, making the negative margin less significant. By implementing these strategies, the company can improve its contribution margin, ultimately reaching the break-even point and moving towards profitability.

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Related Questions

BRAINLIEST TO WHOEVER ANSWERS FIRST!
A painter is placing a ladder to reach the third story window, which is 39 feet above the ground and
makes an angle with the ground of 80°.
How far out from the building does the base of the ladder need to be positioned? Round your answer to
the nearest tenth.
The base of the ladder needs to be positioned
feet out from the building.

Answers

Answer:

I believe it has to be placed about 8 feet from the base

Step-by-step explanation:

sorry if wrong

25 points and brainliest!! look at picture below.

Answers

Answer:

the volume of the cone is 1,196.92

Step-by-step explanation:

V = 1/3 x 3.14 x r^2 x h

Can someone help me please

Answers

Answer:

X=3-(y/2)=8

Step-by-step explanation:

suppose the numbers is X

3 less than half the product of a number is 8

X= 3- (y/2)=8

1/2(8n)-3

Hope that helps

An African elephant weighed 209 lbs when it was born. Baby elephants gain an average of 38 lbs per week.

Part A

Write an equation that could be used to calculate the number of weeks, w, it would take a baby elephant to weigh 1197 lbs.

Part B

How many weeks will it take for the baby elephant to weigh 1197lbs?

Enter your equation, your answer, and your work or explanation in the space provided.

Answers

Answer:

Part A: W= (1197- 209)/ 38

Part B: 26 Weeks

Step-by-step explanation:

Part A:

We first need to subtract the 209lbs from the goal of 1197lbs. Now we have how many pounds we need to gain. Then we need to divide it by how many pounds we are gaining a week. Now we have how many weeks it will take

Part B:

W= (1197- 209)/ 38

W= 988/ 38

W= 26

Find the slope of the line that passes through (4,-5) and (-2,9)

a -2/3
b 5/3
c-7/3
d 2
Please help me ASAP

Answers

Answer:

sorry i dont know

The answer is C
Hope this helps

Simplify the expression -2.2f+0.5f-13-3

Answers

Answer:

-1.7f - 16

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

Brackets Parenthesis Exponents Multiplication Division Addition Subtraction Left to Right

Algebra I

Terms/Coefficients

Step-by-step explanation:

Step 1: Define

-2.2f + 0.5f - 13 - 3

Step 2: Simplify

Combine like terms (f):                                                                                    -1.7f - 13 - 3Combine like terms (Z):                                                                                  -1.7f - 16

During the summer, Mr. Brust does a lot of napping (and snoring)! In a typical nap, Mr. Brust will snore on average 320 times (or the ratio of naps to snores is 1 nap : 320 snores). Find the total number of times Mr. Brust snored last summer during naps in July and August if he took one nap everyday.

Answers

Answer: Mr Brust snored a total of 19,840 times last summer

Step-by-step explanation:

Mr Brust snores in the ratio of 1 nap : 320 snores or 1 nap = 320 snores

Given that he took a  nap everyday,  last summer We have that  .

For the month of July,

he had 31 naps( 31 days are in July)

Number of snores he made =31 x 320=9,920 snores

For the month of August

he also took 31 naps ( 31 days are in AugusT)

Number of snores he made = 31 x 320=9,920 snores

Therefore  Mr Brust snored a total of 9,920+ 9,920 =19,840 times

Fill in the blanks. This is important

Answers

in ce clasa ești tu??????

Find the value of ST:

Answers

Answer:

16

Step-by-step explanation:

It's the only one which 5x + 1 can equal, with x being 3.

Hope that helps!

If h(x) = x3 + x and g(x) = 2x +3, then g(h(2))

Answers

Answer:

They both equal 23 so it’s a true statement

Step-by-step explanation:

h(x) = x3 + x and g(x)

=

h(2) = 2^3 + 2

= 8 + 2

= 10

g(h(2))

= g(10)

= 2*10 + 3

= 20 + 3

= 23

2x +3, then g(h(2))

=

h(2) = 2^3 + 2 = 8+2 = 10

Now we will substitute into g(h(2)

g(h(2)) = g(10)

Now we will substitute into g(x).

g(10) = 2*10 + 3 = 23

g(h(2)) = 23

They are both equal 22 so it’s equal

1. What is the circumference of the circle
below
(18 m
C 113 m
A 36 m
B 56.5 m
D 324 m

Answers

Answer : 56.5

The formula for circumference is C = pi(d)
If the diameter was 18 all you would do is multiply 18x3.14 is would give you 56.5.

Hope it helped :)!

Please help, and plz don't be saying this is the right answer if u dont know for sure.

Answers

Answer:

135 degrees

Step-by-step explanation:

(8x-7)+(12x+57)=180

combine like terms

20x+50 = 180

subtract 50 on both sides

20x = 130

divide by 20

x = 130/20

x = 13/2

x = 6.5

cpq = 12x+57

cpq = 78 + 57

cpq = 135

4. the following are the varriables in the term 10xyz Except

5. Evaluate the given algebric expression m2 - 3m + 2 if m =3.

6.What is the value of the varriable so that the algebraic expression s2 - 16 will result to 0.

help plsss​

Answers

Answer:

Step-by-step explanation:

5. Putting value of m = 3

m2 - 3m + 2

(3)2 - 3(3) + 2

6 - 9 + 2

= - 1

The answer is -1 pretty sure

Please help. Mathematics.

Answers

Step 4 cause 1.4116*800=1129.28.
step 4, so sorry if wrong!!!

what is 3 + 7 -90+180

Answers

Answer:

100

Step-by-step explanation:

3+7=10

-90+180=90

10+90=100

What is 2/10, 2/5, and 2/20 ordered form least to greatest?

Answers

Step-by-step explanation:

2/20, 2/10 , 2/5

set them all to the same denominator of 20:

2/20, ,4/20, 8/20

3 x 5 x 2 uygnkuhgkhgiyhbkhbkgy

Answers

The answer is 30.
Hope this helps

Answer:

30 is the answer hope this helps!!

what's
[tex] {3}^{4} [/tex]

Answers

QUESTION:

What is the value of 3⁴

SOLUTION:

▶️ 3⁴ = 3×3×3×3

▶️ 3⁴ = 81

ANSWER:

The value of 3⁴ is 81..

how much grams are in a milligram ​

Answers

there are 1000 milligrams in 1 gram

Hope this helps

Solve the following equation by using the QUADRATIC FORMULA
x2 – 5x – 12 = 0

Show how you got that answer

Answers

Answer:

x=(5+√73)/2 or x=(5-√73)/2

Step-by-step explanation:

a=1 b=-5 c=-12

x= (-b+/-√b^2-4ac)/2a

x= (-(-5)+/-√(5)^2-4(1)(-12))/2(1)

x= (5+/-√25-4(-12))/2

x= (5+/-√25+48)/2

x= (5+/-√73)/2

x=(5+√73)/2 or x=(5-√73)/2

√: This symbol represents the square root if you get confused.

cuál es el siguiente número de -10​

Answers

Answer:

en los números negativos es opuesto a los positivos es decir en los positivos después del 302 ira el 303 encambio en los negativos del

-10 irá el -9

Jana has $10. She wants to buy a bottle of nail polish for $9.50. The sales tax is 7%. Does she have enough money?

Answers

Answer:no, she would be 17 cents short

Step-by-step explanation:

Answer:

No.

Step-by-step explanation:

Compute the tax =

9.50 * 7% = 9.5 * .07 or 66.5 cents.

Since she only has $10, she does not have enough money.

Solve using substitution. x − 6y = –8 x + 6y = 16 please help imma fail

Answers

Answer:

x=−16/7

Step-by-step explanation:

happy to help ya :)

Answer:

x = 4, y = 2

Step-by-step explanation:

x - 6y = - 8 is the same as x = 6y - 8

sub that into x + 6y = 16 :

6y - 8 + 6y = 16

12y = 16 + 8

y = 2

sub that into x = 6y - 8:

x = 12 - 8 = 4

                     

How do I write the sum of 1 and q as an algebraic expression?

Answers

Answer:

1+Q

Step-by-step explanation:

Answer:

1 + q

Step-by-step explanation:

since sum means to add, and they give the values of 1 and q, we just need to plug it in.

I’m stuck I need help please.

Answers

Answer:

6

Step-by-step explanation:

30+25n=90+15n

10n=60

n=6

Answer:

She would have to buy 4 personal training sessions

Step-by-step explanation:

30 + 25 + 25 + 25 (3 training sessions)

= 105

90 + 15 (1 training session)

= 105

TIMED!!

PLEASE HELP!!

WILL give brainliest

Answers

Answer:

easy third one also plz give heart

Step-by-step explanation:

i just know

Please help
(10 points)
A bill for dinner at a restaurant is $98.87. A 15% tip for the server is added
to the bill. What is the total amount of the bill?
A $100.37
B $109.26
$113.70
D $113.87

Answers

$ 113.70 : 98.87 x .15 = 14.83. ; add that to 98.87

FAST!!
Select ALL the correct answers.
With which information can you construct more than one triangle?

the measurements of two angles

the measurements of two angles and the length of the included side

the measurements of all the angles

the lengths of two sides and the measurement of the included angle

Answers

Answer:

a b and d

Step-by-step explanation:

Answer:

the measurements of two angles

the measurements of two angles and the length of the included side

the lengths of two sides and the measurement of the included angle

Step-by-step explanation:

The side lengths of a triangle are 9, 12, and 18. Is this a right triangle? O A. Yes, because 92 + 122 ​

Answers

Answer:

O A. Yes, because 92 + 122 = 152

B. No, because 9 + 12 15.

C. Yes, because 92 + 122> 152.

D. No, because 92 + 122 + 15 ^2

1

SEE ANSWER

Step-by-step explanation:

The area of a square field is (49m^2 - 42m + 9) square units. find the dimensions of the field. ( STEP BY STEP EXPLANATION)

Answers

Answer:

(7m−3)(7m−3)

Step-by-step explanation:

Factor 49m2−42m+9

49m2−42m+9

=(7m−3)(7m−3)

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