Unit Contribution Total Contribution $0.75 $63,000 Products $0.33 $1.25 $82,000 $95,000 $0.85 $115,000 Arrange the products in descending order of their individual dollar contribution to the firm: $0.75 $57,000 Arrange the products in descending order of their total dollar contribution to the firm: Based on the "product-by-value" analysis, which products are the 3 lowest in total dollar contribution and therefore possible candidates for replacement? should be investigated for replacement.

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Perform a "product-by-value" analysis on products A, B, C, D, and E:
Unit Contribution
Total Contribution
A
$0.75
$63,000
Products
B
$0.33
$82,000
C
D
$1.25
$0.85
$95,000 $115,000
Arrange the products in descending order of their individual dollar contribution to the firm:
E
$0.75
$57,000
Arrange the products in descending order of their total dollar contribution to the firm:
Based on the "product-by-value" analysis, which products are the 3 lowest in total dollar contribution and therefore
possible candidates for replacement?
should be investigated for replacement.
Transcribed Image Text:Perform a "product-by-value" analysis on products A, B, C, D, and E: Unit Contribution Total Contribution A $0.75 $63,000 Products B $0.33 $82,000 C D $1.25 $0.85 $95,000 $115,000 Arrange the products in descending order of their individual dollar contribution to the firm: E $0.75 $57,000 Arrange the products in descending order of their total dollar contribution to the firm: Based on the "product-by-value" analysis, which products are the 3 lowest in total dollar contribution and therefore possible candidates for replacement? should be investigated for replacement.
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ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing