Question

Scenario Media Wise sells a range of media products in package deals. The products sold within...

Scenario

Media Wise sells a range of media products in package deals. The products sold within bundles are as follows.  

TV

Stand

Speaker

Selling Price (£)

400

50

40

Variable Cost (£)

250

30

25

Package A consists of a TV and a stand and is sold for a discounted price of £420. Package B consists of a TV, a stand and two speakers and is sold for a discounted price of £480. Currently packages are sold in a ratio of 2 Package As for every 3 Package Bs and 600 packages are sold each month. Fixed costs are expected to be £82,000 for the month.  

Question 1

Calculate the contribution per package for Package A and Package B

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