why does it calculate the BEP by the cost difference, instead of calculating each BEP and compare one by one? I still don't understand the logic behind it
Back to overview
18
Anonymous A
on Feb 11, 2023
Global
Question about
Case
Break even question
2
2.3k
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Ian
on Feb 12, 2023
Coach
Ex-BCG | NYU Stern | MBB, Tech, & Strategy Coach | 5,000+ Sessions | 500+ Offers | 1,000+ Candidates | 100+ Countries
Hi there,
I think you're saying why don't we calculate the BEP for 1 center and the BEP for 5 centers? And then compare?
If that's the case, yes, I agree! The author here got “cute” which can sometime be helpful (shortcuts can be faster), but can also be dangerous (mistakes).
In this particular instance I would calcualte the BEPs seperately and compare.
0 comments
Hagen
edited on Feb 12, 2023
Coach
Globally top-ranked MBB coach | >95% success rate | 9+ years consulting, interviewing and coaching experience
Hi there,
I think this is an interesting question that may be relevant for many people. I would be happy to share my thoughts on it:
- Given the question is whether to have 1 or 5 distribution centers, it's enough to see with what option you'll reach the break-even point (BEP) sooner. Since distribution centers are cost centers, you can do so by comparing the relative fixed cost advantage of one option with the running cost advantage of the other option.
- However, you could also answer the question by calculating the BEPs separately and comparing them, where you would see a difference in BEP of about 9 years.
If you would like a more detailed discussion on how to best prepare your upcoming interviews, please don't hesitate to contact me directly.
Best,
Hagen
Similar Questions
Most Popular Posts
Final Round with BCG for Senior Analyst Role
17
on Sep 26, 2026
USA
5
200+
Top answer by
Franco
Coach
Ex BCG Principal & Global Interviewer (10+ Years) | 100+ MBB Offers | 95% Success Rate
5 Answers
200+ Views
+2
Networking per firm
14
on Sep 28, 2026
Middle East
7
200+
Top answer by
Carlos
Coach
Free 15 min intro | Engagement manager | 5+ yrs interviewing candidates | 90%+ success rate
7 Answers
200+ Views
+4
How to prepare for Strategy& video interview?
17
on Sep 29, 2026
UK
9
300+
Top answer by
Hatem
Coach
Ex-Manager at BCG | INSEAD MBA | +10yrs strategy experience at BCG, Uber and PwC
9 Answers
300+ Views
+6
Oliver Wyman Dubai - Principal and Partner rounds advice
17
on Sep 30, 2026
Middle East
10
200+
Top answer by
Boris
Coach
Ex-McKinsey | Haas MBA | PhD in behavioral science | Proven method with 95% success rate
10 Answers
200+ Views
+7
Bain Interview Prep
20
on Oct 2, 2026
DACH
10
200+
Top answer by
Carlos
Coach
Free 15 min intro | Engagement manager | 5+ yrs interviewing candidates | 90%+ success rate
10 Answers
200+ Views
+7