Pricing and the relationship with the contribution margin in management decisions: a case study

Abstract

This article aimed to highlight the formation of the selling price of items produced by the bakery. The study sought to elucidate the following problem: how does the company define its sales price formation strategy? In the methodological way, the research was framed in relation to the approach as qualitative and quantitative; Regarding the procedures with the case study and as techniques of data collection and analysis, we used: observation, interview and spreadsheet. It was observed that among the products of own manufacture the product with the highest contribution margin is product 2 (Biscuit ‘Chipinha '), and that the product with the lowest contribution margin is product 9 (Chipa). The study also showed that the best selling product is product 11 (french bread). It is concluded with the study that, since the company has been active for 16 years, it is considered that it has already conquered its space and has a considerable number of clients to maintain it, and this allows us to point out that, the contribution margin of the company's products is good. However, the prices charged were below those suggested by the markup.