Why Is Contribution Margin Important? Give an Example

question 11

Essay

Why is contribution margin important? Give an example.

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Definitions:

Job Characteristics Inventory

A tool used to evaluate the specific attributes or dimensions of a job, such as task variety, autonomy, and feedback, which affect employee motivation and satisfaction.

Core Job Characteristics

Fundamental attributes of a job that affect an employee's motivation and job satisfaction, including skill variety, task identity, task significance, autonomy, and feedback.

Critical Psychological States

Key states of mind that are believed to affect an employee's motivation and satisfaction, including experienced meaningfulness, responsibility for outcomes, and knowledge of results.

Autonomy

The degree to which a job provides an employee with the discretion and independence to schedule their work and determine how it is done.