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?
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19
Europe
Can someone explain the calculation of the revenue and the variable costs for the different regions?
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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
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