Why is the calculation:
- New cost/revenue ratio = 45% – ( 3 * 5%) = 30%
- New gross profit % = 1-30% = 70%
- New sales/day = 300 * (1-30%) = 210
- New revenue = 210 * 9 = ~ 1.900 EUR
- New absolute gross profit for Pizza = ~ 1.300 EUR (vs old one of 1.500 EUR) ?
In the text it says that the cost7revenue ratio decreases of 5 %. Before it was 45%, and reducing it by 5% points makes it 40, doesn't it? Same with the number of sales. Before it was 300 pizzas sold, minus 10% would be 270 sales of pizza in my opinion and not 210 like in the solution.
Can anyone help maybe?
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