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@miketye said:
Just had a quick look – The aim of Maximin is to maximise the minimum contribution and with a price of $500 the minimum contribution would be $175,200. The other 2 give contributions of $165,000 & $142,800
With a selling price of $600, the demand will be 420 pushchairs and variable costs $260. Revenue (600) – Var costs (260) = $340 x demand (420) = $142,800 contribution so you’d be better off going with a price of $500 which gives contribution of $175,200Thank you very much! good luck 🙂
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