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Keep stable profit margin

How do you calculate the percentage of customers (80%) who have to buy the warranty to keep a stable profit margin in the last question?

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Top answer
on Oct 30, 2023
#1 Rated & Awarded McKinsey Coach | Top MBB Coach | Verifiable success rates

Victoria, happy to help but I struggle to understand the question for now. Can you provide more details as to what you don't understand? 

Also, adding here a resource for common terms that show up in case interviews. Might help you and others as well who stumble upon this case:


Best,
Cristian

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V
on Nov 04, 2023
Sorry for the inconvenience. I'm referring to the question under analysis 2: Which percentage of customers has to buy the warranty in order to keep WyCar’s profit margin from model “300” stable? I'm confused about how could we get the 80% in the answer?
Ian
Coach
on Oct 30, 2023
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi Victoria,

Help us help you!

Which specific part of the case are you referring to? And where is your confusion? (Screenshots help!)

V
on Nov 04, 2023
Sorry for the inconvenience. I'm referring to the question under analysis 2: Which percentage of customers has to buy the warranty in order to keep WyCar’s profit margin from model “300” stable?
Ian
Coach
on Nov 05, 2023
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success
I see Idea 1, 2, and 3 as sections
Alberto
Coach
on Oct 31, 2023
Ex-McKinsey AP | Professional MBB Coach | +13yrs experience | +2,000 real interviews | +150 offers

Hi Victoria,

We need more details on your question. Happy to keep talking un private, just send me a message.

Best,

Alberto

Check out my latest case based on a real MBB interview: Sierra Springs