BUS 640 week 3 DQ 2 contribution analysis

AIM: To discuss contribution analysis and to examine its utility in short-term decision-making. To discuss the effects of scarcity and mutual exclusivity upon the short-term decision-making process.

Cumulative Contribution / Break Even Analysis

At 250,000 At 500,000 At 750,000 At 1 million Customers Customers Customers Customers

At Mio Customers

Avg. Revenue Per customer (Table B)

Less :

Avg. Direct Cost . Customer Avg. Acquisition Cost / Customer

Total Direct Costs

Contribution / New Customers

Contribution - Existing Customers

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