I don't know what I'm doing wrong with this calculating the profit here. It seems to me like I should be solving 200 - 200(0.3+0.25+0.2+0.04+0.01+0.1) since all of the expenses are written as a percentage of revenue. I'm getting $20 for profits for US but the answer is $15?
Thanks!
Hi there,
You are correct. US answer should be $20 and Vietnam answer should be $30.
The case writter forgot that their retail price was $200 not $100!
Remember, casebooks aren't perfect. I find a mistake in every 5th case or so.
