Accounting Learning and Online Communication for Niche Market

Question: Discuss about the Accounting Learning and Online Communication for Niche Market. Answer: Calculation of Contribution Margin Calculation of contribution margin Products Anxiety disorder treatment Stimulating tumour immunity Cancer stem cells drug Selling price per unit $ 5,000.00 $ 3,000.00 $ 8,000.00 Less variable cost per unit $ 3,500.00 $ 1,800.00 $ 6,200.00 Contribution per unit $ 1,500.00 $ 1,200.00 $ 1,800.00 Contribution margin per unit 30% 40% 23% Different Contribution Margin Unless the company belongs to the niche market, it will not consider being a good business if the company only sells the product with same range of piece or contribution margin. If it dies so, it will mean that the company is appealing to only 1section of customers rather than considering the large market sector. With consideration that Bionomics provide various treatment related to anxiety, tumour and cancer, providing only the stimulating tumour immunity treatment as it has the highest contribution margin, the patients suffering from c cancer and anxiety will not get the services from Bionomics. Further, a company that does not have various contribution margins will not be considered as competitive as compared to other companies in the industry[1]. Resource Constraints of Bionomics The possibility is there that the patients will get some better option for their treatment and will get saturated with the way they are providing services. Therefore, the pressure for providing improved and unique services will be high to maintain the contribution margin. The biggest constrains will be the market competitiveness and obsoleteness of the way they are providing services or treating the patients. Further, the technologies and machineries used for the purpose of treatment may also become the constraints for the company and they may need to upgrade the techniques as well as the machineries to maintain the sustainability. Relevance of the constrains to the decision of selling the product Generally, the major factor will be market condition in which they are operating. The constraint definitely plays an important role in deciding regarding which product is to sell and which is to be discontinued. However, as Bionomics deals in providing services related to various treatments, their decisions will not only depend on the constraints but also on the requirement of the patients and their preferences[2]. References 'Http://Www.Bionomics.Com.Au/' (https://www.bionomics.com.au/, 2017) https://www.bionomics.com.au/ accessed 31 May 2017 'Resource Constraints' (Future Agenda, 2017) https://www.futureagenda.org/insight/resource-constraints accessed 31 May 2017