BU362- Midterm Exam Guide - Comprehensive Notes for the exam ( 32 pages long!)
Document Summary
Bu362 class 2: the fair value of an investment: investment returns + wage, cost, price, and contribution, type of cost, calculation of unit contribution, total contribution, and net contribution, price chain, course-pack example illustration (p. 51-52, fc= k. Vc= unit contribution = p vc = . 5- = . 50. Tvc = vc*sales units = *24k units =k. Revenue = p*sales units = . 5*24k units =k. Net contribution = total contribution fc = k - k = k. Tvc = k revenue = (. 25*12k) k + (37. 5*12k) k = k. Net contribution = k - k = -k: exercise b, q1. 25% = (sh. 5-vc)/(sh. 5), vc = . 75: q2. Markup on costs (%) = (unit contribution/vc) * [(unit price vc)/vc] Ha(cid:396)(cid:448)ey"s price = vc + unit contribution = Markup on sales (%) : discussion q: flight seats 110 passengers and the flight costs k fc + vc/passenger.
