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i couldn’t understand from where comes contribution earned by imoni co. 120$ .
when it is written in question it is 40$ per component .plus i have another problem in calculating redundancy and lost contribution .
i couldn’t understand from where it comes .1$ million. kindly please explain . thanksThe current contribution is $40, which means that the cost to Imoni is 200 – 40 = 160.
They are going to increase the price charged to 280 and so in future they will get a contribution of 280 – 160 = 120.
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