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SSaha8y ago

Hi Ken, I was trying to do BCG Question December 2014 Q1 Part a (i) of "ROAM GROUP CO". I got stuck How Group Revenue of Stuart Roam Road Transport (SRRT) in 2013 generating 57.39% and Operating Profit is coming 54.83%.....? Kindly guide me how this calculation come I will highly appreciate if you please show me the method how this calculation comes....? Kind Regards

kengarrettTutor8y ago#1

Total 2013 revenue of the group = 575 + 315 + 112 = 1002 So, Transport produces 575/1002 = 57.39% Operating profit % = operating profit/sales so Operating profit = Sales x Operating profit % Total operating profit = 575 x 10.8% + 315 x 14.55% + 112 x 4.75% = 113.2525 Transport's share = 575 x 10.8/113.2525 = 54.83%

SSaha8y ago#2

I really appreciate your prompt reply. Many Thanks for helping. :)

kengarrettTutor8y ago#3

No problems.

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