Consulting Consulting
Finance General
Finance General
Verabrede dich zum Casen über das Meeting-Board, nimm an Diskussionen in unserem Consulting Q&A teil und finde gleichgesinnte Interview-Partner:innen, um dich auszutauschen und gemeinsam zu üben!
Meeting-Board
Consulting-Q&A
Interview-Partner
Premium-Mitgliedschaft
Zurück zur Übersicht
Anonym A
am 15. Jan. 2020
Global
Frage zu
Case
Ich möchte Updates zu der Frage per E-Mail erhalten.

Having trouble with Question 4 - Can Someone Please Explain?

For some reason having trouble figuring out question 4 ; maybe my brain is too tired, but help would be very much appreciated! 

2
3,3k
14
Schreibe eine Antwort
Schreibe die erste Antwort!
Bisher hat niemand auf diese Frage reagiert.
Beste Antwort
Clara
Coach
am 16. Jan. 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Before putting the numbers, might help u to solve it "theoretically". Write both equations from both situations (revenue - fixed cost - variable cost) and outline which is the factor you are missing, since that is the answer you are looking for. 

Hope it helps!

Cheers, 

Clara

1
Coach kontaktieren
1 Kommentar
Anonym A
am 17. Jan. 2020
You're awesome, thank you!
Antonello
Coach
am 15. Jan. 2020
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

Hi,
Old situation:
-- 10M subscribers
-- 20$/month subscription fee
-- 1800$/year goods sold per subscriber
-- 3% commission for each transaction
-- 1B$ fixed cost
-- 110M$ variable cost per subscriber
--> this leads to a profit of 20$/month per subscriber 

New situation:
-- 10M subscribers (same)
-- 10$/month subscription fee (change)
-- x$/year goods sold per subscriber (what we have to calculate)
-- 3% commission for each transaction (same)
-- 1B$ fixed cost (same)
-- 110M$ variable cost per subscriber (same)
--> Costs remain constant (no factor changed): C = 1B$ + 10M*110M$ = 2.1B$
--> To maintain the same profitability Revenue per customer should be the same: R_new = 12*10$ + x*3% = R_old = 12*20$ + 1800$*3% = 294$
--> x = (294$ - 120$) / 3% = 5800$

Hope it helps,
Antonello

1
Coach kontaktieren
1 Kommentar
Anonym A
am 15. Jan. 2020
Amazing, thank you so much
Ähnliche Fragen
Consulting
Does mathematical accuracy matter while solving cases in an interview? How do I enable myself to do faster calculations?
am 28. Aug. 2024
Asien
6
1,8k
85
6 Antworten
1,8k Aufrufe
Consulting
Interview ended with only 2 case questions, Is this normal?
am 6. Sept. 2024
USA
2
1,4k
43
2 Antworten
1,4k Aufrufe
Consulting
APD McK final round - how bad was it?
am 6. Sept. 2024
USA
4
1,5k
75
4 Antworten
1,5k Aufrufe
Consulting
Struggling with Mental Math - Should I Give Up on Consulting?
am 16. Sept. 2024
Europa
9
2,7k
116
9 Antworten
2,7k Aufrufe
Consulting
Frage zu
Case
N. of bottles sold after 5th year
am 4. Okt. 2024
Asien
3
900+
57
3 Antworten
900+ Aufrufe
Mehr anzeigen
Frage zum Case
Case von
PrepLounge
OnlineGo
4,4
16,6k mal gelöst
Fortgeschritten
Interviewer-led
Case öffnen
Verwandter Case
Expertencase von
Ian
BCG + Bain - Vets2U - Healthcare Based Case WITH VIDEO SOLUTION
4,6
2,7k mal gelöst
Fortgeschritten
Candidate-led
Case öffnen
Ähnliche Fragen
Consulting
Does mathematical accuracy matter while solving cases in an interview? How do I enable myself to do faster calculations?
am 28. Aug. 2024
85
6
1,8k
Consulting
Interview ended with only 2 case questions, Is this normal?
am 6. Sept. 2024
43
2
1,4k
Consulting
APD McK final round - how bad was it?
am 6. Sept. 2024
75
4
1,5k
Consulting
Struggling with Mental Math - Should I Give Up on Consulting?
am 16. Sept. 2024
116
9
2,7k
Consulting
Frage zu
Case
N. of bottles sold after 5th year
am 4. Okt. 2024
57
3
900+
Mehr anzeigen
Fragen nach Kategorien
Fragen rund um MBB
Fragen zum CV
Fragen zu Personal Fit
Fragen oder Feedback?
Wähle eine Kategorie
  • Wähle eine Kategorie
  • Case-Interview-Vorbereitung
  • Coaching
  • Technische Probleme
  • Andere
Dein Name
Deine E-Mail-Adresse
Abbrechen