Question

1. A company markets 2 products: the PV excluding VAT of product A is €74.37 with a margin of 0.5 the PV excluding VAT of product B is €111.55 with a margin of 1 The company's fees are as follows: - 2 independent sellers, each dealing with a product, earning €1,487.36 per month each and €2.97 per product sold for product A; €1.98 per product sold for product B. - packaging costs are €0.07 each for product A and €0.05 part for product B. - secretarial and administrative costs amount to €94,199.54 per year - the warehouse costs €12,394.68 per year. - market research costs amount to €24,789.35 per year for product A and 19 €831.48 per year for product B. The quantities sold this year are 4,000 units for product A and 5,000 units for product B. a) Calculate the profitability of the year for product A knowing that the distribution key of common fixed costs is 60% for A.

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Answer to a math question 1. A company markets 2 products: the PV excluding VAT of product A is €74.37 with a margin of 0.5 the PV excluding VAT of product B is €111.55 with a margin of 1 The company's fees are as follows: - 2 independent sellers, each dealing with a product, earning €1,487.36 per month each and €2.97 per product sold for product A; €1.98 per product sold for product B. - packaging costs are €0.07 each for product A and €0.05 part for product B. - secretarial and administrative costs amount to €94,199.54 per year - the warehouse costs €12,394.68 per year. - market research costs amount to €24,789.35 per year for product A and 19 €831.48 per year for product B. The quantities sold this year are 4,000 units for product A and 5,000 units for product B. a) Calculate the profitability of the year for product A knowing that the distribution key of common fixed costs is 60% for A.

Expert avatar
Clarabelle
4.7
94 Answers
To calculate the profitability of the year for product A, we first need to calculate the total revenue, total costs, and then determine the profit.

Total revenue for product A:
Total revenue = Price per unit * Quantity sold
Total revenue for product A = €74.37 * 4000 = €297,480

Total cost for product A:
1. Seller costs:
Total seller cost for product A = (2 sellers cost per month + 2.97 per product) * 4000
Total seller cost for product A = (2 * 1487.36 + 2.97 * 4000) = €13,796.72

2. Packaging costs:
Total packaging cost for product A = 0.07 * 4000 = €280

3. Fixed costs allocated to product A:
Total fixed costs = (Secretarial + warehouse + market research) * 60%
Total fixed costs for product A = (94199.54 + 12394.68 + 24789.35) * 60%
Total fixed costs for product A = €77,676.58

Total cost for product A = Seller costs + Packaging costs + Fixed costs for product A
Total cost for product A = €13,796.72 + €280 + €77,676.58 = €91,753.30

Profit for product A:
Profit for product A = Total revenue for product A - Total cost for product A
Profit for product A = €297,480 - €91,753.30 = €205,726.70

\textbf{Answer:} The profitability for product A for the year is €205,726.70.

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