How is the gross margin (%) calculated in this case?
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Anonymous A
on Mar 2, 2023
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Gross margin
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Top answer
Hagen
edited on Mar 3, 2023
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Globally top-ranked MBB coach | >95% success rate | 9+ years consulting, interviewing and coaching experience
Hi there,
I would be happy to share my thoughts on it:
- While I did not find any information about how the gross margin is calculated in this specific case study, I would advise you to assume that it follows the standard of dividing the gross profit by revenues.
If you would like a more detailed discussion on how to best prepare for your upcoming interviews, please don't hesitate to contact me directly.
Best,
Hagen
0 comments
Andi
on Mar 5, 2023
Coach
BCG 1st & Final Round interviewer | Personalized prep with >95% success rate | 7yrs coaching | Experienced Hires
Hi there,
please stick to the normal way of deriving Gross Margin - this is a very standard accounting metric.
- Gross Margin (in %) = Gross Profit / Revenue
- Gross profit (in $) = Revenue - Cost of Goods Sold (COGS)
Regards, Andi
Pedro
on Mar 3, 2023
Coach
BAIN | EY-Parthenon | Roland Berger | Former Principal | FIT & PEI Expert
Gross Margin = (Sales - COGS) / Sales
Ian
on Mar 3, 2023
Coach
Ex-BCG | NYU Stern | MBB, Tech, & Strategy Coach | 5,000+ Sessions | 500+ Offers | 1,000+ Candidates | 100+ Countries
Hi there,
Just a random guess, but this probably has something to do with it :)
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