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Business
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| Number of pages / Number of words: |
2 / 559 |
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The contribution margin can also give insight on the short-run versus long-run effects when cutting prices on special orders (Horngren, Sundem, & Stratton, 2005). Not saying that this approach is the best out of all methods because multiple methods or approaches give more information and a bigger picture...
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The break-even point pretty much gives the same results as the contribution margin does. It all depends on personal preferences and convenience for this particular situation. Last but not least the operating income is very important it can aid in many management decisions. Any of these methods will help...
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