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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.
I don’t have that book so it’s hard to investigate.
It’s about a 1% increase. It’s not for a quarter year is it?