1555852 C595598s imid C93306 round:4-Go. xm/studentexam/boardquery/boardquery_js

Question

1555852 C595598s imid C93306 round:4-Go. xm/studentexam/boardquery/boardquery_js.cfm?studentKey 15558528gsimid C59559&simid; C933068round-4 COMPxm Comp JM Exam NUIER Points: 10 G2006 Capsim Management Simulations, Inc. 10 Assuming no direct tactory overhead costs (e, inventory carry costs) and $3 million dollars in combined promotion and sales budget, the Best product manager wishes to achieve a product contribution margin of 35% Given their product currently is priced at $35.00, what would they need to limit the material and labor costs to? Select 1 Save Answer ts $21 00 $22.75 $24.50 $23.00 10 10 10 10 10 10 55 East Monroe, Suite 3210 Chicage IL 60603 USA and Canada 377 477-4707 (Others 1-012-477-7200) sales@capsim.com

Explanation / Answer

selling price = 35

contribution margin in % =35%

contribution margin in value = 35*35% = 12.25

variable cost (material and labor cost) = selling price-contribution margin

35-12.25 = 22.75

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