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
10
Consideration of labour costs for cat toilet in gross profit planning
1
1.5k
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
I am expecting interviews at Oliver Wyman for the DACH offices. What type of cases should be my focus and how does the process look like?
12
on Jul 22, 2026
DACH
5
100+
Top answer by
Elvira
Coach
Senior Manager zeb Consulting | Case Interview & Personal Fit Coach | CV Review | Banking & Consulting
5 Answers
100+ Views
+2
Applied to McKinsey ME office, status is "under review" but no Solve invite yet, is this normal?
12
on Jul 22, 2026
Middle East
5
100+
Top answer by
Federico
Coach
Ex-BCG Partner | Interviewer and Career Advisor | Fully tailored approach
5 Answers
100+ Views
+2
Rejected by Bain without a test?
12
on Jul 24, 2026
Global
6
100+
Top answer by
Alessandro
Coach
McKinsey Senior Engagement Manager | Interviewer Lead | 1,000+ real MBB interviews | 2026 Solve, PEI, AI-case specialist
6 Answers
100+ Views
+3
Pivoting from big tech to consulting
12
on Jul 24, 2026
Middle East
7
100+
Top answer by
Alessandro
Coach
McKinsey Senior Engagement Manager | Interviewer Lead | 1,000+ real MBB interviews | 2026 Solve, PEI, AI-case specialist
7 Answers
100+ Views
+4
Issue Tree vs. Action Plan in Case Interview Structure
15
on Jul 25, 2026
Global
7
100+
Top answer by
Alessandro
Coach
McKinsey Senior Engagement Manager | Interviewer Lead | 1,000+ real MBB interviews | 2026 Solve, PEI, AI-case specialist
7 Answers
100+ Views
+4