Get Active in Our Amazing Community of Over 454,000 Peers!
Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Case Partners to connect and practice with!
Hello, isn't it 2205 members per week? How are we deciding that this is the number per year? (Not multiplying by 52)
Overview of answers
Upvotes
Best answer
The missing piece here is cost exhibit. It states that each player plays one hour per week. This means that if you know the total number of hours played by week (2,205), you know how many members the club has.
As they want to know the annual charge, you now just need to divide the total annual costs by the number of members to know the minimum membership fee to break even at 70% utilization.
Was this answer helpful?
Hi there,
Yes, you need to check the cost exhibit.
I recognize you are probably doing this case on your own, however, in a real case, make sure to clarify your understanding of the exhibit. "Small" misunderstandings like this could turn the case in the wrong direction!
Was this answer helpful?
Sign up for free to read all answers.
Sign up for free to read all answers.
Thank you, very clear. The exhibit confused me because it says Court Use: 1 hour per member per week. So I understood it to be the maximum allowance per member per week. Not the necessarily the number of hours played per week per member. Thanks again.