THE APPLICATION OF THE CONTRIBUTION MARGIN APPROACH TO PRICING DECISION IN MANUFACTURING ORGANIZATIONS

INTRODUCTION

The management of an organization is concerned with planning, the managers outline the steps to be taken in moving the organization towards its objectives.

In organizing, the managers decided how best to put together the organization’s human and other resources in order to carryout these steps that are necessary to ensure that ever part of the organization is functioning at maximum effectiveness. Through decision making, the manager attempts to make rational choice between alternatives and to determine the best course of action to adopt. Some of the important decision to be made by the management includes investment decision, special sales order decisions, marketing decision, pricing decision etc.

However, pricing decision is considered by many to be the single most important decision that a manager has to take. It is a decision touching on all aspects of a firm’s activities and as much affects the enterprise.

Garrison (1976: 490) said that “when managers are faced with pricing decisions, the pricing method to adopt depends on which method that was used to cost units of products”. Since the prices charged for a firm’s product is largely determined the quantities customers are willing to purchase. The setting of price dictates the inflow of revenues.

Harold (1946: 468) however, concurs with Stanton by stating that “price help to determine the money wages paid for labour and the real wages received by labourers”.

REVIEW OF LITERATURE

To make for sequence, clarity and more understanding of “The Application of the Contribution Margin Approach to Pricing Decision in Manufacturing Organizations with particular reference to Innoson Technology Nigeria, Enugu, a review of related literature is presented under the following sub – headings.

DATA PRESENTATION

Under this chapter all the data generated in the area of this research were presented, analyzed, and interpreted. Following the sample size derived using Taro Yamane Formula as stated in chapter three, a total of 65 questionnaires were distributed to the managers and senior staff of the above mentioned department used for this research.

A total of 57 questionnaires were properly filled and returned after all efforts were made for the collection of the questionnaires.

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APA

Kings, S. (2018). THE APPLICATION OF THE CONTRIBUTION MARGIN APPROACH TO PRICING DECISION IN MANUFACTURING ORGANIZATIONS. Afribary. Retrieved from https://track.afribary.com/works/the-application-of-the-contribution-margin-approach-to-pricing-decision-in-manufacturing-organizations-7308

MLA 8th

Kings, Solomon "THE APPLICATION OF THE CONTRIBUTION MARGIN APPROACH TO PRICING DECISION IN MANUFACTURING ORGANIZATIONS" Afribary. Afribary, 29 Jan. 2018, https://track.afribary.com/works/the-application-of-the-contribution-margin-approach-to-pricing-decision-in-manufacturing-organizations-7308. Accessed 27 Nov. 2024.

MLA7

Kings, Solomon . "THE APPLICATION OF THE CONTRIBUTION MARGIN APPROACH TO PRICING DECISION IN MANUFACTURING ORGANIZATIONS". Afribary, Afribary, 29 Jan. 2018. Web. 27 Nov. 2024. < https://track.afribary.com/works/the-application-of-the-contribution-margin-approach-to-pricing-decision-in-manufacturing-organizations-7308 >.

Chicago

Kings, Solomon . "THE APPLICATION OF THE CONTRIBUTION MARGIN APPROACH TO PRICING DECISION IN MANUFACTURING ORGANIZATIONS" Afribary (2018). Accessed November 27, 2024. https://track.afribary.com/works/the-application-of-the-contribution-margin-approach-to-pricing-decision-in-manufacturing-organizations-7308

THE APPLICATION OF THE CONTRIBUTION MARGIN APPROACH TO PRICING DECISION IN MANUFACTURING ORGANIZATIONS

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