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Triple Jump Co has three subsidiaries Hop Co, Step Co and JumpCo. HopCo manufactures product A and sells to distributors with a sales price of
Triple Jump Co has three subsidiaries Hop Co, Step Co and JumpCo. HopCo manufactures product A and sells to distributors with a sales price of 42 after applying a mark up of 75%. StepCo distributes product A incurring an additional variable cost of 7 per unit, and sells to retailers for 55 per unit. JumpCo retails product A to external customers incurring an additional cost of 9 per unit, it sells for 75 per unit. StepCo can source product A externally for 40, or it can source the product from HopCo. JumpCo can source Product A from Stepco, or they can source for 48 from an external distributor who sources their product from Hopco. What is the optimal total contribution per unit of Product A at Triple Jump Co group level? 19 35 36 48.5
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