Hello, I have a question about unit contribution margin for a case study: I am...
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Accounting
Hello, I have a question about unit contribution margin for a case study:
I am trying to determine if a company (Wallas) should accept a contract based on the information below.
QUESTIONS: 1) What does the negative contribution margin of ($0.41) indicate? Is this the total loss per unit if the deal were accepted?
2) Should they accept the contract?
7. Based on quantitative calculations, should Wallas accept the school's offer? Why or why not? Special Order Testing Students Male Female Total Total Costs Cost/Student 1.25 0.10 0.46 0.54 1.25 0.37 3.97 122 150 272 Blood Grouping Reagents Gloves Optician Other Consumables Pregnancy Test Kits Transportation and Logistics Total Variable Costs 340.00 S $27.20 $ 125.00 $ $ 146.88 $ $ 187.50 $ 100.00 $ $ 926.58 $ Paid for Servic e$3.00 Expected Revenue816.00 Unit Contribution Margin $(0.41)
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