I have just been through this case in a meeting as an interviewer, but both me and my interviewee came up with different numbers for the changes in profitability. Is this a mistake of the numbers in the case, the formula (changes in profitability = changes in sales * profit margin) or our understanding of profit margin and calculation of profitability?
E.g, for seatbelts, if the profit margin is 50 %, and the change in sales is - $90 Mio, shouldn't the change in profitability be $-90 Mio*0,5 = -$45 Mio of this, and not -$23 Mio?
Thank you for your help :)
Back to overview
36
Calculation of Change in Profitability
1
4.7k
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Ian
on May 19, 2020
Coach
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success
Hi Benedikt,
You are correct! My apologies, the case will be updated shortly :)
In summary:
1) Seatbelt change in profitability is indeed -$45M
2) Total projected change in profitability is -$43M
Apologies for the confusion!
0 comments
Similar Questions
Most Popular Posts
BAIN Round 2 What to expect by Experienced Hire.
17
on Aug 11, 2026
DACH
10
400+
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
10 Answers
400+ Views
+7
What weight is given to previous consulting internships vs a target university?
20
on Aug 11, 2026
Europe
12
300+
Top answer by
Elvira
Coach
Senior Manager zeb Consulting | Case Interview & Personal Fit Coach | CV Review | Banking & Consulting
12 Answers
300+ Views
+9
Re-applied to Mckinsey after 10 Months. Not sure of Chances
17
on Aug 12, 2026
USA
10
300+
Top answer by
Hagen
Coach
Globally top-ranked MBB coach | >95% success rate | 9+ years consulting, interviewing and coaching experience
10 Answers
300+ Views
+7
EY Parthenon - Second Round
16
on Aug 13, 2026
DACH
7
200+
Top answer by
Federico
Coach
Ex-BCG Partner, Interviewer & Career Advisor | Fully tailored approach
7 Answers
200+ Views
+4
Looking for a case Partner
21
on Aug 14, 2026
Global
7
200+
Top answer by
Federico
Coach
Ex-BCG Partner, Interviewer & Career Advisor | Fully tailored approach
7 Answers
200+ Views
+4