Why are the labour costs (in the amount of 5 million) not added in the gross profit planning? Since cat toilets are no longer produced, the costs for the process are eliminated in addition to the sales.
Back to overview
8
Consideration of labour costs for cat toilet in gross profit planning
1
1.4k
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Ian
on Nov 10, 2021
Coach
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success
Hi David,
I'm a bit confused by your question, but I do think the answer is in the case (See below):
- Termination of production and sale of cat lavatories
- Cat lavatories are a loss-maker as they do not generate gross profit but account for personnel costs and other operating costs. Consequently, cat lavatories reduce profit. Since costs for employees and other operating expenses can be eliminated, production should be discontinued.
- Evaluation: Benefits result from an increase in profit. Possible disadvantages, on the other hand, are for example damage of reputation when ending production and reducing staff.
0 comments
Sign up for free to read all answers.
Sign up for free to read all answers.
Similar Questions
Most Popular Posts
My biggest fear
9
on Apr 15, 2026
Europe
10
100+
Top answer by
Franco
Coach
Ex BCG Principal & Global Interviewer (10+ Years) | 100+ MBB Offers | 95% Success Rate
10 Answers
100+ Views
+7
How do referral work?
8
on Apr 15, 2026
Europe
9
200+
Top answer by
Franco
Coach
Ex BCG Principal & Global Interviewer (10+ Years) | 100+ MBB Offers | 95% Success Rate
9 Answers
200+ Views
+6
I got fired from a T2 and struggling to find a job
10
on Apr 16, 2026
UK
8
100+
Top answer by
Franco
Coach
Ex BCG Principal & Global Interviewer (10+ Years) | 100+ MBB Offers | 95% Success Rate
8 Answers
100+ Views
+5
Not getting responses from LinkedIn outreach or post-event follow-ups — what am I doing wrong?
15
on Apr 17, 2026
USA
8
100+
Top answer by
Soheil
Coach
INSEAD | EM & Strategy Consultant | 3.5Y Consulting | 5★ Case Coach | 350+ Cases | 50+ Live Interviews | MBB-Level
8 Answers
100+ Views
+5
Question: "Is there something we haven't asked you that we should?"
9
on Apr 20, 2026
Europe
10
200+
Top answer by
Soheil
Coach
INSEAD | EM & Strategy Consultant | 3.5Y Consulting | 5★ Case Coach | 350+ Cases | 50+ Live Interviews | MBB-Level
10 Answers
200+ Views
+7