Decision Making and CM Calculations

Decision Making and CM Calculations

Nature of the Business

This paper is based on a case study involving xYZ tobbacco company facing a tough decision as what should be done to counter the price hike in cigarrette products due to a massive stock market crash that was looming nearer. If the management of the firm would have decided to increase the cost price of the product, then the skeptics would have called the practice a monopolistic hegemony on part of the XYZ firm.

In this situation, being the Director Sales Operation, I would have suggested to use the Contribution Margin ...