How does higher contribution margin indicate differentiation strategy?

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    • #11762
      AjNext
      Keymaster

      1. In this problem, we are a company called Videocon. We want to make a TV in India.
      2. It will import 40% of parts from Sansui japan. Balance 60% will be made in India or purchased from India.
      3. Apart from the above cost of the parts, we have Assembling cost, Technical know-how and royalty.
      4. We add all the costs and let SP be X. Finally Cost + Profit = SP. We solve the equation and get the answer.

    • #12250
      AjNext
      Keymaster

    • #12247
      AjNext
      Keymaster

      • This reply was modified 2 months, 1 week ago by AjNext.
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