The Marginal Contribution Is Defined As

question 38

Multiple Choice

The marginal contribution is defined as: 

• A) selling price per unit minus variable cost per unit
• B) total fixed costs minus selling price per unit
• C) variable cost per unit minus the selling price per unit
• D) total fixed costs plus total variable costs

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Definitions:

Supply Disruption

An unexpected event that interrupts the normal flow of goods and materials in a supply chain, potentially leading to stockouts, increased costs, or delivery delays.

Incentive

A factor, often a form of reward or penalty, that motivates individuals to perform an action or behave in a certain manner.

Fewer Suppliers

A procurement strategy where a company intentionally reduces the number of suppliers in its supply chain to improve efficiency and negotiate better terms.

Bullwhip Effect

describes the phenomenon where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.