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Hi,
Has anyone attempted the RY Decision tree question in the revision book with kaplan, I can follow the lay out of the tree but I have two questions:
1) is question ‘a’ only asking you to map out the tree without any figures?
2) If you are to include figures can you tell me how you get the last figures on the tree where it as €5(.6) and €6(.4) and say on the top branch there is a figure of €6000 next to these, what makes this up?
Any help will be appreciated?
Thanks
Melliott
6000 is total contribution @ that point.. How it is calculated?
$80 is selling price and it is expected that 80 passengers will travel so total revenue $6400 now less variable cost from it..$5 per passenger and 80 passenger will cost $400
so total contribution 6000..
This is how he came up with this
hope this will help you
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Thank you, very useful!
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