Yilandwe 2015

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December 9, 2015 at 9:22 am #289503
petus1
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Sir,

I have a question. The contribution in home country has been calcuted as $120. May i get explanation on this. I guess this might be 200-40-280 but what is the logic behind doing this.Is it Sales- variable cost = contribution,
December 9, 2015 at 9:25 am #289504
John Moffat
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They currently charge $200 and earn a contribution of $40, so the variable cost must be $160.

They are going to transfer at $280, so the contribution is going to be $280 – $160 = $120.
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