Chapter 22, Problem 1BTN

To determine

Product Revenue Mix:

This is that revenue which is earned by selling the different product and product line by the same organization. In the today’s world, it can be seen that many multinational companies deal in four to five product. In other words, it can be said that it is the percentage of contribution of different product.

Amount of the revenue of the different product line.

Explanation of Solution

Total revenue ($)	Year ending	I Product 1	I Product 2	M Product	Service	Other
		66%	10%	11%	9%	4%
233,715	September 2015	154,251.9	23,371.5	25,708.65	21.034.35	9,348.6
182,795	September 2014	120,644.7	18,279.5	20,107.45	16,451.55	7,311.8
170,910	September 2013	112,800.6	17,091	18,800.10	15,381.90	6,836.4

Table(1)

Working note:

Given,
Total revenue of 2015 is $233,715.
Percentage of revenue of I Product 1 is 66%
Percentage of revenue of I Product 2 is 10%
Percentage of revenue of M Product is 11%
Percentage of revenue of service is 9%
Percentage of revenue of other is 4%

Computation of revenue of I Product 1,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$233,715\times 66\%\\ =\$154,251.90\end{array}$

Computation of revenue of I Product 2,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$233,715\times 10\%\\ =\$23,371.50\end{array}$

Computation of revenue of M Product,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$233,715\times 11\%\\ =\$25,708.65\end{array}$

Computation of revenue of service,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$233,715\times 9\%\\ =\$21,708.65\end{array}$

Computation of revenue of other,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$233,715\times 4\%\\ =\$9,348.60\end{array}$

Given
Total revenue of 2014 is $182,795.
Percentage of revenue of I Product 1 is 66%
Percentage of revenue of I Product 2 is 10%
Percentage of revenue of M Product is 11%
Percentage of revenue of service is 9%
Percentage of revenue of other is 4%

Computation of revenue of I Product 1,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$182,795\times 66\%\\ =\$120,644.70\end{array}$

Computation of revenue of I Product 2,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$182,795\times 10\%\\ =\$18,279.50\end{array}$

Computation of revenue of M Product,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$182,795\times 11\%\\ =\$20,107.45\end{array}$

Computation of revenue of service,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$182,795\times 9\%\\ =\$16,451.55\end{array}$

Computation of revenue of other,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$182,795\times 4\%\\ =\$7,311.80\end{array}$

Given,
Total revenue of 2013 is $182,795.
Percentage of revenue of I Product 1 is 66%
Percentage of revenue of I Product 2 is 10%
Percentage of revenue of M Product is 11%
Percentage of revenue of service is 9%
Percentage of revenue of other is 4%

Computation of revenue of I Product 1,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$170,910\times 66\%\\ =\$112,800.6\end{array}$

Computation of revenue of I Product 2,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$170,910\times 10\%\\ =\$17,09\end{array}$

Computation of revenue of M Product,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$170,910\times 11\%\\ =\$18,800.10\end{array}$

Computation of revenue of service,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$170,910\times 9\%\\ =\$15,381.90\end{array}$

Computation of revenue of other,

$\begin{array}{c}\text{Revenue}=\text{Total}\text{revenue}\times \text{Percentage}\text{of}\text{revenue}\\ =\$170,910\times 4\%\\ =\$6,836.4\end{array}$