Lopten - Dec 2013

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.

Great :-)