Contribution Margin

Purpose
The purpose of this paper is to assess whether travel agencies that implement comprehensive marketing performance assessment systems (MPASs) enjoy superior overall performance. Drawing on the Knowledge-Based View, we propose and test a model demonstrating that the relationship between MPASs and overall performance is fully mediated by the depth of market-related knowledge absorbed by the travel agency.

Design/methodology/approach
A survey was administered to a sample of Italian travel agencies; 171 complete questionnaires were received. The suggested relationships were assessed using a covariance-based structural equation modeling approach, including the estimation of both the measurement model and the structural model. 

Findings
The findings indicate that the implementation of sophisticated MPASs has a significant and positive effect on performance and that this relationship is fully mediated by the depth of market-related knowledge absorbed by the travel agency. In addition, the results highlight that the number of marketing metrics monitored by the travel agency has no effect on its performance.

Research limitations/implications
The specific features of the travel agency sector in Italy include a remarkable level of fragmentation. The cross-sectional design does not permit an assessment of the medium-term effects of the adoption of an MPAS.

Practical implications
Travel agencies selecting proactive marketing strategies can particularly benefit from the adoption of sophisticated MPASs. Suggestions are provided to assist managers in designing their MPAS.

Originality/value
This study enriches the field’s knowledge about marketing performance measurement and proactive marketing strategies and indicates that the implementation of well-designed marketing performance assessment systems improves a firm’s overall performance. It also explains the knowledge-related processes that produce this positive effect.

The aim of this paper is to propose optimization of costing method for planning a production-sales programme of the chosen engineering enterprise dealing with the production of components for wood working machines. This engineering company uses the calculation pattern methodology in the comprehensive cost accounting system. All costs components are absorbed by individual outputs in this cost calculation. The results of this calculation are not available for decision-making tasks. In order to solve the decision tasks relating to output assortment optimization, it is necessary to show separately variable costs influenced by changes in production volume and fixed costs not influenced by changes in production volume. For these reasons we propose a specific application of retrograde costing as a necessary condition for effective system of decision-making on the basis of contribution margin calculation. The contribution margin/standard hour is the criteria for the calculation in a critical place of production and this is very important information for developing an optimal production-sales programme.

In Antioquia, SMEs (textile-clothing sector) generate a high percentage of sales and jobs, dynamizing the economy. Because of their importance, this paper checks the impact of the exchange rate on their competitive performance by calculating the contribution margin ratio (CMR). The article found that 43 percent of the SMEs analyzed have an outstanding performance, 14 percent are on their way to be competitive, 12 percent show little competitiveness, and 31 percent are not competitive at all. The SMEs had an average CMR of 26 percent, which is not enough to cover fixed costs and provide a profit. The current exchange rate levels reduce this CMR, so the industry is not feasible from a value creation point of view.

Purpose:  The aim of this research was to find out the differences in guest occupancies and profits of the private and public hotels between and within the years 2008 and 2014.

Methodology: The researchers followed explanatory research to differentiate the data with statistical tools. The researchers undertook the deductive approach to test the hypothesis comparing occupancy and profit of the hotels. The researchers used survey and interview method in this study. Public and private hotels were chosen as sample during the year 2008 and 2014 from Cox’s Bazar main beach area. The samples were selected based on judgment sampling method. The researchers used mono method and a cross-sectional research by considering the data of the years 2008 and 2014 only.

This research mainly based on field survey instead of depending on the artificial figures provided by the hotel officials. The information was confirmed by several respondents during the interview.

Findings: Significant differences found in the occupancies and profits of the public and private hotels during the year 2008 and 2014 individually. Also, between the years, 2008 and 2014, differences were observed in occupancy and profit of the private hotels. No difference diagnosed in the occupancy and profit of public hotels between 2008 and 2014. In the survey, the researchers’ diagnosed that the hotels had a common tendency to avoid Tax payment to keep the profit uncut.

Practical implications: Further research can be done to compare the tax earnings of the government from public and private sector at different period. New researchers can use this research data in further research to calculate the tax payment based on revenue earnings and occupancy.