Consulting Consulting
Back to overview

How do you calculate the percentage of Customers to keep profit margin stable?

8
1
2.4k
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Profile picture of Ian
Ian
Coach
on Aug 06, 2020
Ex-BCG | NYU Stern | MBB, Tech, & Strategy Coach | 5,000+ Sessions | 500+ Offers | 1,000+ Candidates | 100+ Countries

Hi Franziska,

This is a classic breakeven!

So, first, create the full formula, and then pulg-in what's missing.

  1. Profit from warranty* % quantity sold = Profit loss from car
  2. (Revenue from warranty - expected cost from warranty) * quantity sold = Profit loss from car
  3. (2,350 - 1,100) * quantity sold  = $1,000
  4. 1,250 * quantity sold = $1,000
  5. Quantity sold = 1,000/1,250 = 80%