What is the "Expected AMG Manufaktur usage of sold cars there" factor exactly? And why does it matter in revenue and variable costs, but not in fixed costs?

Revenue cost is not the only way to break things down — please don't forget this!

The "Expected AMG Manufaktur usage" is the take rate: what percentage of cars sold in that market will include the Manufaktur customization option. Manufaktur is AMG's bespoke program where customers individually spec paint, interior materials, stitching — at a meaningful price premium.

Revenue: A Manufaktur car earns more per unit than a standard car. The mix of Manufaktur vs. standard directly affects what you earn per car sold — even if total units stay the same. Higher take rate, higher average revenue.

Variable costs: More materials, more customization labor, more finishing time per Manufaktur car. These scale with production volume and product mix. Higher take rate = higher average variable cost per unit.

Fixed costs: The factory, R&D, management, real estate — none of that moves based on how many customers choose Manufaktur. Whether take rate is 5% or 50%, the overhead is the same.

The Manufaktur usage rate is a product mix variable. Product mix variables flow through revenue and variable costs. They don't move fixed costs. That's why.

For more on this kind of case analysis: Ace the Case Interview. And here's a worked video example showing this type of breakdown: Bain + BCG Hot Wheels Case with Video Solution.

hey there :)

This factor basically estimates what share of the cars sold will include AMG Manufaktur options, meaning custom upgrades like special paint, interior materials, or bespoke features. It matters for revenue because those options increase the average selling price per car. At the same time, they raise variable costs since each customized feature has additional material and production costs. Fixed costs don’t change because things like factory infrastructure, salaried staff, and equipment remain the same regardless of how many cars include those custom options.

best,
Alessa :)