Can anyone guide me through this calculation please? I don't understand how the % that price reduction (€1000) represents of warranty profits (€1250) is directly related to the % of costumers needed to keep profits stable (80%).
Thank you in advance!
Hi there,
Fair question! So, because we are losing revenue from price reduction, we need to make up for this by gaining revenue from warranty sales.
This is a classic breakeven!
So, first, create the full formula, and then pulg-in what's missing.
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