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Am I wrong?

Hello Everyone!

I can't seem to find the right answer to the following case question:

World Cinema is going to make an investment of $255 000 to open 3 new cinema rooms. 30% of the total investment will go to marketing costs, which equals three-fourths of the construction costs. The remaining amount goes to operation costs of the 3 cinema rooms in 1 year. How much does it cost to operate 1 cinema room in a month?

After calculation, I find Marketing Costs (76 500$), Construction Costs (102 000$) and Total Operation Costs for 3 cinema rooms in a year (76 500$) so Operation Costs for 1 cinema room in a month (2 125$).

Does someone know why is the solution supposed to be 2 550$?

Thanks in advance for your insights!

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Profilbild von Sidi
Sidi
Coach
am 10. Feb. 2020
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 500+ candidates secure MBB offers

Agree with you and Vlad on the result. The given solution seems flawed.

Cheers, Sidi

Profilbild von Vlad
Vlad
Coach
am 9. Feb. 2020
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

Got 2125 as well

Best

Profilbild von Ian
Ian
Coach
am 10. Feb. 2020
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Same as the others here. Note that ~5% of cases in my experience have some kind of math error...the creators are human after all!

Gelöschter Nutzer
am 10. Feb. 2020

Confirmed, I've got the same number as others.

Good luck,

André

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Profilbild von Clara
Clara
Coach
am 10. Feb. 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Agree with your result. 

Do you know the source of the case? Worth double-checking with them where the discrepancies come from (I don´t think that someone who publishes a case makes a silly mistake like this, there must be a piece of info that got lost in the way)

Cheers, 

Clara

Profilbild von Luca
Luca
Coach
am 11. Feb. 2020
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

I confirm 2125$

Profilbild von Antonello
am 11. Feb. 2020
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

No, you are not wrong :)