I'm not sure how to calculate the revenue in Question 2.2.
e.g. for America:
(50k * 40%)cars * 21k (price per car) * 30% (regional volume America) = 56,3 M Euro
BUT: the solution shows a revenue of 6,3 M Euro for America.
Can someone please explain to me how this is calculated?
Back to overview
19
Europe
Can someone explain the calculation of the revenue and the variable costs for the different regions?
2
2.1k
Be the first to answer!
Nobody has responded to this question yet.
Hi there -- here is the formula to get to 6.3M
[Cars Sold] x [% in Region] x [% US of Region] x [% Customized] x [Price]
50k x 60% x 30% x 1/30 x 21k = 6.3m
Hey there,
Vinicius is spot on.
In your calculation:
- You should have used 60% for the US instead of 40%
- You missed the allowance for Expected AMG Manufacture usage for cars sold there i.e. multiplying the 1/30
You'd get to the 6.3m Euro in your answer with this adjustment
