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.

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Clarabelle

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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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