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C
on May 06, 2021
Global
Question about

300 sales per day decreased by 10% after removing 3 prep items?

It mentions 300 sales per day decreased by 10% after removing 3 prep items? But the calculation shows 300*(1-30%) ? Am I missing something? 

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Ian
Coach
on May 06, 2021
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi Chris,

While I haven't solved this case, I note the following text right above the suggested math of 300*(1-30%): 

"We know that if we take out 1 prep item from the dish, we would decrease cost/revenue ratio by 5 percentage points, but the sales/day would also decrease by 10%"

It states sales per day decrease 10% for ONE, not three prep items!

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Clara
Coach
on May 07, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

I believe there is a typo, since that 30% does not make sense to me. 

Cheers, 

Clara