pays for a major portion of the cost of the marketing campaign. Calculate the last row, and check whether the total profit adds up correctly! Scenario One - No Price Change- Estimation of Batt-x's Profit from Gamma-Z Revenue from Car Sales Cost per Batt-X Batt-X Batt-X Growth # of Packs Price Per Gamma-Z Battery Cost Profit Profit Year Car Sales Prediction Per Car Pack (SMillion) Pack (SMillion) (SMillion) Growth -1 18,000 20 s 500 S 180 S 410 S 148 $ 32 This Year 25,000 39% 20 S 500 S 250 S 410 S 205 S 45 39% +1 35,000 40% 20 $ 500 $ 350 S 369 S 258 S 92 104% +2 50,000 43% 20 S 500 ? Total Profit 337 Note: You expect cost per battery pack reduce 10% annually for the next two years.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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pays for a major portion of the cost of the marketing campaign. Calculate the last row, and check whether the
total profit adds up correctly!
Scenario One - No Price Change- Estimation of Batt-x's Profit from Gamma-Z
Revenue
Car Sales
from
Cost per
Batt-X
Batt-X
Batt-X
Growth
# of Packs
Price Per Gamma-Z
Battery
Pack
Cost
Profit
Profit
Year
Car Sales Prediction
Per Car
Pack
(SMillion)
(SMillion) (SMillion)
Growth
-1
18,000
20 S
500 S
180 S
410 S
148 S
32
This Year
25,000
39%
20 S
500 S
250 S
410 S
205 S
45
39%
+1
35,000
40%
20 $
500 S
350 S
369 S
258 S
92
104%
+2
50,000
43%
20 S
500 ?
is
Total Profit
337
Note: You expect cost per battery pack reduce 10% annually for the next two years.
Transcribed Image Text:pays for a major portion of the cost of the marketing campaign. Calculate the last row, and check whether the total profit adds up correctly! Scenario One - No Price Change- Estimation of Batt-x's Profit from Gamma-Z Revenue Car Sales from Cost per Batt-X Batt-X Batt-X Growth # of Packs Price Per Gamma-Z Battery Pack Cost Profit Profit Year Car Sales Prediction Per Car Pack (SMillion) (SMillion) (SMillion) Growth -1 18,000 20 S 500 S 180 S 410 S 148 S 32 This Year 25,000 39% 20 S 500 S 250 S 410 S 205 S 45 39% +1 35,000 40% 20 $ 500 S 350 S 369 S 258 S 92 104% +2 50,000 43% 20 S 500 ? is Total Profit 337 Note: You expect cost per battery pack reduce 10% annually for the next two years.
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