Round 2 debrief: Lower variable costs improves contribution margin Reduce costs wherever necessary Sales forecast is based on potential sales Gross Revenue (Price multiplied by Your Forecast.) Variable Costs (Labor, material and inventory carrying costs subtracted from the Gross Revenue forecast.) Contribution Margin (Gross Revenue forecast minus Variable Costs.) Fixed Costs (Depreciation, R&D costs, Promotion Budget, Sales Budget and admin costs.) Net Margin (Contribution Margin forecast minus the product’s Fixed Costs forecast.) Early retirement of long-term debt Not producing enough as per demand Look at the competition revision date Unit sold must be projected value must be lower than the actual sold General contribution margin must be 40% Play for a long run Your strategy must not lie between the short term, Introduce a new product with the positioning of the long run Cs score= top score / all score will give the market potential for the next year and which product is going to sell most in next year Product cannot be launched in low cost Cost of sold out is less than cost of cos of inventory Scientist need to be added in human resources No more high automation Get your R&D right Start with your why and how and what Market leader should also shape the industry Customer Buying Criteria should be checked each time Take advantage of product at right age Invest money where you can more returns in business