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Hi Sir,
For qns 1(ii), I am unable to calculate out the new contribution per unit of $51.9 and the no of units to cover the lost operating profit of $105,973.
Please advise
Thanks
Joanna51.9 = 75 – 21 – 10% X 21 [SP – new cost of sale]
Profits down by $5.5m; contribution/unit = 51.9
5,500,000/51.9 = 105,973
Yes, usually.
Strictly planning gap could,refer,to other things such as a gap in production capacity.
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