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COS

DHL Consulting case: Bike Shop
Neue Antwort am 6. Juli 2023
3 Antworten
468 Views
Anonym A fragte am 3. Juli 2023

How to realize that COS is fixed at €640 per bike and NOT relative to the sales price??

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Cristian
Experte
Content Creator
antwortete am 6. Juli 2023
#1 rated MBB & McKinsey Coach

Hi there, 

COS reflects the total value of the costs associated with that product. 

If I decide to double the price the COS won't change, only the profits will.

Best,
Cristian

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Ian
Experte
Content Creator
antwortete am 3. Juli 2023
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Logic.

How much does is cost x factory to produce a bike?

Now, how much does it cost x factory to product the same bike if we double the price in the store?

The same.

This is part of business acumen which needs to be built!

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Andi
Experte
antwortete am 5. Juli 2023
BCG 1st & Final Round interviewer | Personalized prep with >95% success rate | 7yrs coaching | #1 for Experienced Hires

Hi there,

as Ian mentioned, sales price and cost of sales are unrelated.

  • COS can be defined as “the accumulated total of all costs used to create a product or service, which has been sold”
  • Whether you increase or decrease the sales price of the bike doesn't change those cost to create the product or servcie
  • Hence, should not put them into relation - COS can be regarded fixed in this case.

Hope this helps.

Regards, Andi 

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Cristian gab die beste Antwort

Cristian

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