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Hi Sir
I have some issues with the pay off table.
Im used to contract size and demand.
But i this case it’s just demand.
I’m able to get the first line right (Contribution X Demand ).
With the same contribution per unit, shouldn’t it be the same amount for the packages?Demand 500 750 1,000
Design package
1 4,557,302 6,835,953 9,114,6042 3,307,302 5,585,953 7,864,604
3 2,057,302 4,335,953 6,614,604
But to develop each package requires a different level of fixed costs and the differemces in fixed development costs have to be taken into account when working out the pay-offs.
I’ve spent the whole day on this question.
I’ve finally resolved it after my post.
Thx
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