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Q: Why does a company has less control over its revenues than over its costs?
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How do you calculate contribution margin ration if you're only given revenues and fixed costs not selling price?

Revenues Less: Variable cost Contribution Margin Less: Fixed Cost Net Income


How do you calculate GP Gross Profit when the revenue is less than the costs?

If revenue is less than costs, the gross profit is negative -- it is not a profitable company.


What is the formula for Operating Margin?

Operating Margin is a measurement of what proportion of a company's revenue is left over, before taxes and other indirect costs are incurred, after paying for variable costs of production like wages, raw materials etc.A good operating margin is required for a company to be able to pay for its fixed costs like interest on its debt. A higher operating margin means that the company has less financial risk.Formula:Operating Margin = (Operating Income / Revenue)Operating income is the difference between operating revenues and operating expenses


Why do firms become monopolies?

Two main reasons: 1. There are greater profits to be gained by being a monopoly, either in the form of lower costs (economies of scale) or higher revenues (since all the industry demand is supplied by one company). 2. Less uncertainty. You don't have to worry about competition.


Is a company earnings are the same as its revenue?

A company's earnings are equal to revenue less costs of production over a given period of time.


When should a company shut down in short run?

when price is less then average variable costs !


What is an accounting loss?

It is when revenues are less than expenses.


What company makes a watch that looks just like a Rolex but costs way less?

They do this in Mexico. No "one" company makes them. It is more so a trade taken up by local people.


What is cost of visual field test?

Mine costs $146, but that's what my insurance company pays so it might be less if you're self-paying.


What was the average company size of SIC 1311?

Despite the fact that some firms are very large, 53 percent have fewer than five employees and report revenues of $50 million or less. The industry reported 325,900 employees in 1998.


Which would definitely not be the example of price discrimination?

An electric power company charges less for electricity used during off-peak hours when production costs are lower.


Why it is wrong it to waste water?

Because it costs money to clean it and make it suitable for use again. The less water we waste - the less it costs to recycle it !