Explain what is meant by “contribution analysis”. Carefully define the term and provide examples to illustrate it

Explain what is meant by “contribution analysis”. Carefully define the term and provide examples to illustrate it

Explain what is meant by “contribution analysis”. Carefully define the term and provide examples to illustrate it.

Guided Response:
Can you think of a recent example where you had to evaluate the incremental costs and benefits of different options in order to make a decision? In 300 words or more, please, provide your response to the above discussion question. Respond substantively to at least two of your classmates’ postings. Substantive responses use theory, research, and experience or examples to support ideas and further the class knowledge on the discussion topic.

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According to Sanger (2000), contribution analysis is an approach where evaluation is made to establish the cost and effect of a sale. This is done mostly in businesses to ensure that the costs incurred reflect on the output of the business and can actually pay for the indirect costs and for tax. This analysis is important as it keeps businesses on check. This for example is done in malls, analysts can be seen behind computers….

APA

383 words

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