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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
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%
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