question 4 june 2008,minimum target contribution to sales ratio

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October 31, 2012 at 6:24 pm #54786
clairr
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any one done question 4 (b) (ii)?: please show me how to calculate the minimum sale to contribution ratio of “Nellie the elephant.
November 1, 2012 at 3:30 pm #105773
ddnguyen
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Hi bro

when npv = 0 hence

0 = (1 x 4,400) + [0.893 x (4000 x c/s – 1,600 – 200)] + [0.797 x (9000 x c/s – 1,440)] + [0.712 x (5,000 x c/s – 1,296 + 700)] then c/s = 53%

peace
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