Contribution Margin for Products

Item Wholesale Average Unit Varible Contribution Production Production

Number List Price Selling Price cost Margin/Unit Units /8 Hr Units/ Hr
SP (Given) VC (Given) C = SP-VC P (Given) P/8
B2089 $419 $384 $267 $117 133 16.625
B2126 $100 $96 $60 $36 675 84.375
B2241 $356 $357 $178 $179 190 23.75
C2313 $494 $485 $378 $107 145 18.125
B2474 $219 $202 $126 $76 130 16.25
A1073 $418 $384 $138 $246 126 15.75
A1085 $272 $198 $113 $85 222 27.75
A1106 $66 $51 $23 $28 1400 175
A1024 $209 $144 $87 $57 281 35.125
A1145 $119 $102 $69 $33 30 3.75
A1126 $99 $74 $43 $31 1100 137.5
C2201 $159 $159 $130 $29 300 37.5
C1221 $359 $346 $210 $136 160 20
C1424 $279 $239 $135 $104 165 20.625
C1544 $190 $170 $98 $72 175 21.875
C1457 $303 $250 $119 $131 90 11.25
C1567 $192 $158 $105 $53 115 14.375

1 Do not neglect mass merchandising which has high CM / Hr.

2 In operations, high contribution is obtained for mass production because plant has been designed for the
 Contribution
Margin/Hr
C*P/8
$1,945.13
$3,037.50
$4,251.25
$1,939.38
$1,235.00
$3,874.50
$2,358.75
$4,900.00
$2,002.13
$123.75
$4,262.50
$1,087.50
$2,720.00
$2,145.00
$1,575.00
$1,473.75
$761.88

nt has been designed for the same. But marketing is offering variety to the customer. – mismatch
Data for the Current Year
Avg. Assembly Cont. Margin /
Customer Types / Segments Units / Hr
Line Hrs / Unit Unit
Galleries 0.0153 65.36 $39.77
Mom & Pop 0.0188 53.19 $70.80
Small Independents 0.0206 48.54 $52.79
Large Independents 0.0114 87.72 $32.31
Small Chains 0.0126 79.37 $31.09
Mass Merchandisers 0.0110 90.91 $35.47

CUSTOMER TYPES
Small
Gallery Mom & Pop
Independent
Sales $10,307,532 $4,921,200 $18,162,589
% 24.10% 11.51% 42.47%
 Cont. Margin / No. of Cont. Margin /
Hr Outlets Hr / Outlets
$2,599.35 50.00 $51.99
$3,765.96 883.00 $4.26
$2,562.62 601.00 $4.26
$2,834.21 5.00 $566.84
$2,467.46 14.00 $176.25
$3,224.55 1.00 $3,224.55

CUSTOMER TYPES
Large Small
Mass Merchandisers
Independent Chains
$1,742,000 $1,389,077 $6,242,400 $42,764,798
4.07% 3.25% 14.60%