If I'm given revenue and costs on a per unit basis and I start calculating profits on a total basis instead of per unit basis, would the interviewer ask me to do it on a per unit basis (if the case requires or if it's an easier approach)? Or would they just let me run with the "total" basis calculation?
Hi there,
It depends on the interviewer and if you present your approach upfront.
If you explain the theory of your math first (which is a best practice) before calculating numbers, most interviewers will suggest the simpler approach to help you.
Hope this helps,
Francesco
Keep the calculations consistent (either per unit or total) and validate your approach/logic with interviewer. They will guide you should there be a need.
Hi there,
It completely depends on the case!
The most important thing to understand before you calculate anything is why am I calculating this?
If you need profits on a per unit basis in order to understand how good x product or x company is compared to the other options, then calculate it on a per unit basis! If you only need total profits in order to evaluate an investment, get an NPV, etc., then do that! Some cases may need both, so you need to take the "long route".
Again, first figure out what you need to calculate and why. Then, take the most direct approach to that number.
In terms of whether an interviewer will let you go the "wrong way", it depends on both them and you. Fundamentally, you need to lay out your math beforehand. If you do this, most interviewers will autocorrect you. If you don't do this, it's more likely they will let you proceed without correcting you.
Expert case by