For some one who doesnt know the industry / sector - would not be able to imagine per catalogue price. Why cant we simply take total reve / costs of total sales. It yields the same inferance.
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Top answer
Luca
on Feb 29, 2020
Coach
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached
Hello Vaibhav,
You are right, to address the problem you can consider the total revenues and costs. Anyway, in order to answer any additional question about the business, it's important to understand and split the different factors considering at least price per unit, volume, fixed costs and variable costs.
You can have a proof of this reading the other questions in the text.
Best,
Luca
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Ian
on Feb 17, 2020
Coach
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success
Because looking at it from the macro level is too simple. You don't just need to see whether the business is profitable or not, but why. Is this a pricing issue, a quantity sold issue, or something else? Look at the Revenue Estimate Tree chart on the right.
The micro-level breakdown helps you understand the business, products etc. to a much better degree.
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