Kaplan Incremental approach to budget pg132

Hi,

Trying to figure out how example given on the above page in current Kaplan book ties out if rather than applying 4% increase to cost per unit but applying increase in cost to total variable costs for product C in 2004?

Difference in total cost is 203,674 per the book to 209,664 per my calculation. Can you help me out what I’m missing here?

672,000 total cost * .75 = 504,000
504,000 * .40 = 201,600 total variable cost 2004

cost increased by 4%

201,600 * 1.04 = 209,664

Appreciate your help.

thanks,

ed