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Sir, how has been the contibution calculated in yilandwe question.. i tried ur solution explained somewhere else but the method didnt work for me, kindly if u can explain in a little more detail and calculate 18540 and 61108 plz..
Kaplan kit page 165They are currently earning a contribution of $40 per unit. However they are increasing the price by $80 and so the contribution will increase by $80 to $120 per unit.
In year 1 they are selling 150,000 and so the total contribution will be 150,000 x $120 x 1.03 (for inflation) = $18,540,000.
In year 2 they are selling 480,000 and so the total contribution will be 480,000 x $120 x 1.03^2 (for 2 years inflation) = $61,107,840.
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