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Your client is a multinational consumer electronics brand evaluating which region has the strongest financial performance.
The chart below shows for each region:
- Revenue and Cost (in millions of dollars)
- Units sold (in millions)
- Market share (%)
Based on this data, which region appears to be the most financially attractive on a per-unit basis, and why?
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Your answer:
📋 Solution:
Start by scanning the chart for high revenue and low cost gaps. North America leads in both revenue and units sold, but its cost is also high. Asia-Pacific is dominated by Europe in revenue per unit, so we do not have to run the calculations for them, as we know Europe will be higher.
Now calculate estimated profit:
- North America: $180M – $120M = $60M
- Europe: $130M – $100M = $30M
- Latin America: $70M – $55M = $15M
Then calculate profit per unit sold to normalize:
- NA: $60M ÷ 9M = $6.67/unit
- EU: $30M ÷ 7M = $4.29/unit
- LATAM: $15M ÷ 4M = $3.75/unit
North America wins on both total profit and profit per unit. It also holds the highest market share at 30%, indicating dominance and brand strength.