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in question 1 part 5 both of PLAN A and PLAN B were above the target dis you got plan A 135.5million and plan B in one four-tees
if you people got the same answer please replyI think I did plan A like this
(1120X400x1.04) + (440x700x1.04) = total Revenue 786240
(1120x225x1.04) + (440x325x1.04)=variable costs ( 410800)
Fixed costs (240000)
Operating profit 135440
Thus Plan A would lead to favorable performance gap and would meet the target
can any one find mistake in my calculation were the variable costs 225 or 255 please confirmI think I did plan A like this
(1120X400x1.04) + (440x700x1.04) = total Revenue 786240
(1120x225x1.04) + (440x325x1.04)=variable costs ( 410800)
Fixed costs (240000)
Operating profit 135440
Thus Plan A would lead to favorable performance gap and would meet the target
can any one find mistake in my calculation were the variable costs 225 or 255 please confirm- Topics: 0
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Plan B
Posh Cheerful
VC $255.00 $325.00
Selling price $400.00 $700.00
Margin $145.00 $375.00
Units 1,120,000.00 581,900.00
Contribution Margin $162,400,000.00 $218,212,500.00
Fixed costs $120,000,000.00 $120,000,000.00
Profit $42,400,000.00 $98,212,500.00 $140,612,500.00 No GapPlan A
Posh Cheerful
VC $255.00 $325.00
Selling price $400.00 $700.00
Margin $145.00 $375.00
Units 1,211,392.00 475,904.00
Contribution Margin $175,651,840.00 $178,464,000.00
Fixed costs $120,000,000.00 $120,000,000.00
Profit $55,651,840.00 $58,464,000.00 $114,115,840.00 $20,884,160.00 GapOriginal
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