Contribution Analysis Of Golden North Ice Cream Company

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Contribution analysis
Contribution Analysis Total Revenue
Cost of good sale
Advertising and Promotion expense


Number of Unit sold
Contribution Margin per Unit

Assume that a company sells 10,000 product for total revenue of $500,000 with the cost of good sold of $250,000, Advertising and Promotion expense of $100,000 and cost of shipping is $100000.
So the contribution margin per product is ($500,000 – $250,000 – $100,000 - $100,000) / 10,000,Then the result of contribution margin is $5.00 per product. To reach a sell revenue at $500,000.The company need to sell 100,000 unit.

Financial objective
Base of financial funds of the company are from the owner and shareholder of company ,plus the total revenue and profit of Golden north ice cream.In the future ,Golden North might be register into stock exchange for get more financial to expand it company.
6.1Target Markets
Golden north ice cream target market is a Household Consumers at the range of 18 to 35 year old, which are including teenagers young adult and Parents with young children .As this group of customers are usually consume product in this area such as ice cream ,pie or cake.So that would be benefit to our company as we mention this range of customer as our target market.
6.2 Market Positioning
To serve a nice product to customer, Golden North ice-cream always made a product only with highest quality

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