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Is anyone able to help with the calculation that goes into the Shoe Manufacturing Case study

Unfortunately I am not getting the same unit profit that is listed below. If anyone could help with this calculation on how I may get the right answer

My calcs were 200 - (.3+.25+.2+.04+.01+.1)*200 for the US and similar for the vietnam but that gets me $20. I am thinking maybe i took into account the retail margin and/or the defect rate incorrectlyShoe Manufacturing Case study calculation

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Luca
Coach
on Jun 12, 2020
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Hello Alek,

I agree with you, proposed solution sounds weird. I think the only explanation can be that they want to know the profit per shoe and you are calculating the profit per pair of shoes (basically you have to consider only 100$ as revenues an half of the total).
Is it clear? 

Hope it helps,
Luca

Ian
Coach
on Jun 12, 2020
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hey Alek, 

Could you provide us your numbers / calculations so we can see if there's anything you're doing wrong?

on Jun 14, 2020
Hi Ian - My calcs were 200 - (.3+.25+.2+.04+.01+.1)*200 for the US and similar for the vietnam but that gets me $20. I am thinking maybe i took into account the retail margin and/or the defect rate incorrectly
Clara
Coach
on Jun 12, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

I don´t understand which one is your approach, could u 1st share and then we problem-solve with the community?

Cheers, 

Clara

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