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Anonymous A

on Aug 29, 2021

Global

Question about

Margin question

Hi,

Why are we considering only 10% margin and not 30% of gross profit margin?

Thanks

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Top answer

Ian

Coach

on Aug 30, 2021

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

As the case states: “Margins after marketing expenses are on average 10%.” So, we need to consider this in our calcs.

Make sense? Or are you confused as to why we're including marketing expenses in the first place?

1 comment

Anonymous A

on Aug 30, 2021

I am confused about why they only apply 10% margin and they do not apply 30% as well. Shouldn't it be revenues*30%*10%? Many thanks