Calculating revenue per commercial car

Question

Hi there,

Can someone break down why the revenue per commercial car is 600?

Answer 1

Information they provide

Private vehicles # = 2M

Commercial vehicles # = 4M

Private vehicle R = $300

Private vehicle market size = 25% of commercial

Calculations

Private vehicle market size = 2M * 300 = 600M

Private/Commercial = 1/4 ====> 600M / X = 1/4 ======> 600M*4 = 2.4B commercial market size

Commercial Market Size / # of vehicles ====>2.4B / 4M = $600 / vehicle

Answer 2

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Answer 3

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