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
16
Anonymous A
on Feb 11, 2023
Global
Question about
Case
Break even question
2
1.9k
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Ian
on Feb 12, 2023
Coach
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success
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
BCG Assessment
10
on Mar 11, 2026
Middle East
4
100+
Top answer by
Franco
Coach
Ex BCG Principal & Global Interviewer (10+ Years) | 100+ MBB Offers | 95% Success Rate
4 Answers
100+ Views
+1
Onboarding at McKinsey
8
on Mar 11, 2026
Europe
5
100+
Top answer by
Franco
Coach
Ex BCG Principal & Global Interviewer (10+ Years) | 100+ MBB Offers | 95% Success Rate
5 Answers
100+ Views
+2
McKinsey London - R2
9
on Mar 11, 2026
UK
3
100+
Top answer by
Franco
Coach
Ex BCG Principal & Global Interviewer (10+ Years) | 100+ MBB Offers | 95% Success Rate
3 Answers
100+ Views
McKinsey Interview Follow-up
10
on Mar 13, 2026
Global
9
100+
Top answer by
Alessandro
Coach
McKinsey Senior Engagement Manager | Interviewer Lead | 1,000+ real MBB interviews | 2026 Solve, PEI, AI-case specialist
9 Answers
100+ Views
+6
McKinsey Round 1 Rejection (Experienced Hire) – ‘Inconsistent Case Performance’ Feedback but No Details?
11
on Mar 15, 2026
Middle East
7
200+
Top answer by
Ian
Coach
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success
7 Answers
200+ Views
+4