Brandon Production is a small firm focused on the assembly and sale of custom computers. The firm is facing stiff compet

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Brandon Production Is A Small Firm Focused On The Assembly And Sale Of Custom Computers The Firm Is Facing Stiff Compet 1 (55.29 KiB) Viewed 53 times

Brandon Production is a small firm focused on the assembly and sale of custom computers. The firm is facing stiff competition from low-priced alternatives, and is looking at various solutions to remain competitive and profitable. Current financials for the firm are shown in the table below. In the first step, marketing will increase sales by 50%. The next step is vendor (supplier) changes, which would result in a decrease of 10% in the cost of inputs. Finally there is an OM option, which would reduce production costs by 25%. How much is the Contribution margin for the three steps done consecutively? Show solution in Excel. Business Function Current Value Cost of Inputs $50,000 Production Costs $25,000 Revenue $80,000