Hi, when the cost of transport is calculated for the upcoming year, it states the number 20M, but we have decided previously to cut the <5€ product, so the transport cost should be now 15% lower as we would be transporting 15% less. Therefore, if we assume that the 20% could be saved from consolidating suppliers, we should take, before or after, the 15% of the product. I don't know if I am missing something, but what I have is:
Last year transport cost: 20M → New year transport cost (with old strategy for importing): 17M (85%volume*20M) → New year transport cost (with consolidated suppliers): 13.6M(17M-20%of17M reduction by consolidating)
This gives the profit for the new year as:
141.6M + 3M + 3.4M = 148M
I might be missing something, so let me know if it should be done the other way!
