Different Price Levels - Ratio problem (sort of)

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by sunnyjohn » Fri Nov 20, 2009 6:10 pm
Revence of Company = 100$


175-------------------------------75
----------------125----------------- <=== if equal contribution
-----------------------100--------75 <=== current situation

so its clear the they have more corporate customers than small businesses.

175--------------------100-----------75
75 25

so ratio of contribution : 1:3

So,
if total revenue is 400x then corporation are contributing 75*3X

so % will be : 225x/400x ==> 9/16 ==>56.25% answer.

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by ershovici » Sat Nov 21, 2009 1:00 am
Can understand how did you get the ratio
My ratio is vice vercal: (75X+175Y)/x+y = 100 ; 75y = 25x ; 1 corporate for 3 small business????????
What is wrong?

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by palvarez » Sat Nov 21, 2009 1:06 am
75 175

equilibrium point is: 100

whats the distance between 75 and 100 = 25
whats the distance between 100 and 175 = 75

75% of 75 and 25 % of 175 is the answer.

3 of 75 and 1 of 175

225/(400) is the answer