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Walden WMBA6681 Week 4 Discussion
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Walden WMBA6681 Week 4 Discussion: Week 4 Discussion 1: Management and Cost-Volume-Profit Analysis
If you are a manager, one aspect of decision making is
trying to account for change, adjusting how you go about your finances based on
your situation. This can be illustrated through contribution margin—an aspect
of cost-volume-profit analysis that is useful for both professionals and
consumers for decision making. For example, the best time for a consumer to buy
a car is at the end of the year, because the sellers are more willing to sell
cars at the lowest of margins to meet their quotas.
For this Discussion, review the week’s Learning Resources
and consider how situations such as this are not only normal but also critical
to proper decision making based on the conditions of your company and the
By Day 3
An explanation of which features of cost-volume-profit
analysis help managers cope with uncertainty. Justify your response.
An explanation of why managers are interested in the
break-even analysis point.
An analysis of how the contribution margin changes in
relation to output levels due to changes in variable costs and fixed costs. How
can managers make changes to variable costs and fixed costs once budgets or
production targets have been set?
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