Material cost

Question

Someone please help me understand where the material cost of $1400 comes from in question solution 7. I am totally confused.

thanks

Answer 1

Hi there,

I think the given might not be fully comprehensive. I tried deriving that number from the data in the case but I couldn't.

In a real interview, this would have been clarified by either giving you the number of giving you clearer data points to calculate it. Don't worry too much about it.

Mario

Answer 2

Hi there,

To be honest, I just went through the case and am also very confused. In my view you can “ignore” this and move on. Don't worry too much about this particular equation (focus your efforts on the next case!)

Answer 3

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