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Hello,
in solution, average contribution p.u. is calculated =(190+180)/2 , (sum of contrib. p.u./2)
Why when calculating average contrib. pu = total contribution (sales*contrib.pu) / total sales
I don’t get the same result?Which is the right way?
Thank you in advance,
You should get the same result, provided that you are using the standard mix (which is an equal number of each TV).
The BPP answer shows two ways of arriving at the sales quantity variance and they both give the same result. Either way is valid although I personally prefer the first way that they do it (rather than the alternative they show).
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