Marginal Revenue

Net sales consist primarily of revenue from the sale of hardware, software, digital content and applications, peripherals, and service and support contracts. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Product is considered delivered to the .customer once it has been shipped and title and risk of loss have been transferred. For most of the Company's product sales, these criteria are met at the time the product is shipped. For online sales to individuals, the Company defers revenue until the customer receives the product because the Company legally retains a portion of the risk of loss on these sales during transit. The Company recognizes revenue from the sale of hardware products (e.g., Macs, iPhones, Wads, iPods and peripherals), software bundled with hardware that is essential to the functionality of the hardware, and third-party digital content sold on the

15. In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that is ( )

Thank you for the opportunity to assess your sales data in order to provide recommendations for increasing your sales. The analysis and recommendations below are based on the data you provided, which covers a period from May 2004 through June 2006. The analysis below is based on this data alone. Therefore, our recommendations should be tempered by your knowledge of business realities and your market. Please let us know if we can answer any questions concerning the analysis or the recommendations provided.

20. What is the term for the extra revenue derived from the sale of one more unit?

Objective: Analyze the effect of changes in marginal revenues and costs on a firm’s profit-making potential.

Explain how a profit maximizing firm determines its optimal level of output, using marginal revenue and marginal cost as criteria:

Revenue determination is an important tool for health care organizations because it allows for efficient management of payment systems. This paper will look at the different components that form the payment-determination bases of revenue determination. Moreover, the difference between specific and bundled service payments will be discussed. Lastly, the three ways health care providers control their revenue function will be highlighted.

The new sales force will also have to be able to; create new working relationships, develop new business, create a personal atmosphere for customers, and promote new business. After the sales force creates new business, the team must be able to retain these newly established customers. They will have to create small, obtainable, measurable goals for themselves in order to create and sustain new business. The salespeople will have a sales quota of thirty units per month and the commission will go up in increments of ten percent after

OSS generates revenue through activities that constitute their revenue cycle. The revenue cycle is simple for Jan’s store because the store directly exchanges the finished goods for cash in a single transaction between a seller and a buyer. OSS purchase finished goods and keep them in the storage room. Once the customers purchase products, they have to go to the register to pay. The clerk has to record the sales. For example, the first sale is the basketball with item # 201 and sold for $15 dollars. This is a transaction that clerk has to record. Therefore, the revenue cycle repeats for each item that will be sold.

The revenue is $600,600*1.2= $720,720. The variable cost changes as sales increases and fixed cost stays the same, the gross profit is $175,500. After tax, the net income is $100,557.

Sales Revenue Growth is used to measure how fast a company is growing. The Revenue Growth shows the annual rate of increase/decrease in a company’s revenue or sales growth compared to previous years. When Bird Eye launches the marketing campaign to promote the benefits of frozen food, Bird’s Eye must measure how much Revenue has been gained since the start of the marketing campaign to see if progress was made.

By resolving these issues, we can come up with a recommendation that will justify the Sales Department’s need to adjust the current selling prices of their products.

Assignment Question 4: Prepare an analysis of the revenue change, separating the volume effect (increase in number of consultants) from the productivity effect (billing percentage).

No. of employees * (0.10 * Selling Price * Volume of sales) = $100000 + No. of employees * ($25000 + 0.05 * Selling Price * Volume of Sales)

When sales volume increases, Company X will have a higher percentage increase in profit than Company Y. Company X's higher proportion of fixed costs gives the firm a higher operating leverage factor. The company's percentage increase in profit can be found by multiplying the percentage increase in sales volume by the firm's operating leverage factor. The sales mix of a multiproduct organization is the relative proportion of sales of its products. The weighted-average unit contribution margin is the average of the unit contribution margins for a firm's several products, with each product's contribution margin weighted by the relative proportion of that product's sales.