Question: Why did we multiply variable cost with sales cases. Explain the calculation? Coupons (Sales Cases * Coupon Cost per Case) = Sales Cases k Coupon

Why did we multiply variable cost with sales cases. Explain the calculation?

Coupons (Sales Cases * Coupon Cost per Case) = Sales Cases k

Coupons (Sales Cases * Coupon Cost per Case) = Sales Cases k Coupon Cost per Case Annual Coupons (Year 1) Annual Coupons (After Year 1) Commission (Sales Cases * Commission per Case) = Sales Cases Commision Cost per Case Annual Commissions Sales Cases Variable Product Cost per Case $ SA Annual Variable Product Cost SA $ $ $ Variable Product Cost = (Sales Cases * Variable Product Cost per Case) $ $ $ 1,770,000 2.40 4,248,000 1,327,500 1,770,000 2.16 3,823,200 1,770,000 24.4125 43,210,125

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