Question

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

Answer 1