Comparison Between Sterling Farm And Bogside Farm

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Bogside Farm depends on migrant workers to pick its berries by hand, whereas Sterling Farm has invested in expensive berry-picking machines. Contribution margin ratio. This ratio indicates the percentage of each sales dollar that is available to cover a company fixed expenses and there profit. The ratio is calculated by dividing the contribution margin on the sales minus all variable expenses sales. Cost-volume-profit (CVP) analysis will help with the mangers make important decisions such as what products and services to give for offer, what prices to charge, what marketing strategy to the farmers, and what cost structure to maintain they have to do. The farms have about five factors effecting profits to help them to selling price is constant,
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