A small manufacturer of gas grills make final changes to the 2009 operating budget and with some changes in pricing, advertising, and product availability. This brief addresses the theme of the event analysis of the contribution as a simple way to analyze the profit planning issues such as the addition or removal of products or services, price changes, adding or reducing the expected volumes, or preparation of the budget income. In this situation, there are three products, each with different proportions of variable and fixed costs. Product with high profit / unit on the basis of full cost is the lowest input / block based on variable costs, and vice versa. Four different marketing plans offered before finally accepted as a plan for the year. In the end, the actual results can be compared with the budget and the flexible budget or adjusted based on the actual volume of the product is implemented. The rooms are simple and students can easily see the benefit of variable pricing. "Hide
by Brandt Allen Source: Darden School of Business 5 pages. Publication Date: July 8, 2009. Prod. #: UV1767-PDF-ENG