Kodaks Margin and Variable Cost Funtime

$2.79 *Less .56 $2.23 .84 $1.39

Retail Price Dealer Margin (@ 20 %) Kodak Selling Price Variable Cost for All Film (not .70 CM)* Kodak Funtime Contribution

*Note:

It is likely that the cost of producing Funtime film is very

close to that for Gold Plus so the contribution margin is not 70% but is likely much closer to 62%. Calculate Funtimes contribution by subtracting $.84 (films variable cost) from the selling price.