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Hello sir. Is it wrong to calculate the average c/s ratio by doing: ((4800×0.25)+(4800×0.125)+(12000×0.379))/21600=0.293 ?
Yes it is wrong (it gives the wrong answer!!!)
You either calculated the average C/S ratio the way that I do it in the lecture, or (as I do say in the lecture and as is written in the answer in the lecture notes) you take the weighted average of the CS ratios, but you weight by the total revenues.
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