So reading through the instructions for Step 7 I felt surprisingly calm…that doesn’t seem right haha. As I typed up my Step 7 draft, which I have included for you for feedback if you’re keen (pretty please). I decided to make a quick checklist to make sure I have included all of the requirements for this step as Maria did say on the lecture that the little bits count too.
- Identify 3 products or services
- Estimate/Guess selling price
- Estimate/Guess variable cost
- Comment on Contribution Margins you calculated
- Discuss why the contribution margins are different or similar for your three products/services
- Identify constraints resources and market
- Comment on why the constraints might be relevant when deciding what products your company should produce and sell
I realise this is only 4 marks but I am keen to know if I am on the right track with my explanations.