To derive the entirity of the contract bid - shouldnt we add COGS and 15% discount to the bid value itself so that those costs are covered?
Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Back to overview
18
Why is the increase in revenues (as a result of market share increase) calculated the way it is? As opposed to simple calcs?
27
Additional revenue through market share increase
14
Revenue increases calculated at $25 per can vs recommended price of $20 per can
6
Im not certain why cost is deducted from revenue for the entirety of the contract bid.
2
2.2k

Be the first to answer!
Nobody has responded to this question yet.
Top answer

Ian
on Feb 18, 2021
Coach
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success
Hi Ukasha,
If I understand your question correctly, the answer is embedded in the case here:
- Typically, the client calculates profitability by deducting COGS & Overhead from the retail price.
- In such a scenario of bidding, the supplier needs to find out how much profit he can forfeit in order for the deal to remain attractive.
0 comments

Clara
on Feb 18, 2021
Coach
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Hello!
It´s stated in the case, here > "Typically, the client calculates profitability by deducting COGS & Overhead from the retail price"
Cheers,
Clara
Similar Questions
Consulting
Question about
Case
on Aug 07, 2023
Global
2
1.3k

Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 9+ years consulting, interviewing and coaching experience
2 Answers
1.3k Views

Consulting
Question about
Case
on Aug 14, 2023
Global
3
900+

Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 9+ years consulting, interviewing and coaching experience
3 Answers
900+ Views


Consulting
Question about
Case
on Sep 29, 2023
Global
1
800+

Top answer by
Ian
Coach
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success
1 Answer
800+ Views
Question on the Case
Related Product

Prepped and Primed 3
Related Case
Similar Questions
Consulting
Question about
Case
on Aug 07, 2023
27
2
1.3k
Consulting
Question about
Case
on Aug 14, 2023
14
3
900+
Consulting
Question about
Case
on Sep 29, 2023
6
1
800+