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Hi,
In Dec 2013 Lopten question – Q1 (v).
The solution says £162 for the contribution in Cheerful in the current year.
How do you get to that figure?
Thanks,
In the answer I’m looking at I don’t see a figure of $162. I see $145 the unit contribution.
That figure = revenue per unit – variable costs per unit = 448$m/1.12m – (90 + 60 + 40 + 45 + 20) = 145.
Hi Ken,
Im looking at part 5 with the two proposed market strategies.
For Plan A, the solution says that in the first year cheerful will have a contribution of 169 which I believe is an increase of 4% on 162, but I do not understand where the 162 has come from.
thanks,
Have you looked at Appendix 1 of the answer? If so, which figure there do you not understand?
sorry ken. forgot that the contribution is per unit so 145*1.12 gives you the total contribution of 162.
all sorted.
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