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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300 sales per day decreased by 10% after removing 3 prep items?
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Top answer
Ian
on May 6, 2021
Coach
Ex-BCG | NYU Stern | MBB, Tech, & Strategy Coach | 5,000+ Sessions | 500+ Offers | 1,000+ Candidates | 100+ Countries
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
on May 6, 2021
Coach
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
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