Possible error on figure 4?

Dear,

Thanks for the question. After reviewing the case, I believe the confusion can be clarified as follows:

• The total fixed costs per plane are $150,000
• When we break down these fixed costs on a per-flight basis, it amounts to $250 per flight ($150,000/600).

The case instructions state that each plane completes 600 flights over the years, indicating that they operate more than once per year, which is a reasonable assumption.

Therefore, it is essential to determine whether you intend to conduct the break-even analysis on a per-flight or per-plane basis. The solution provided in the case follows the former approach, focusing on calculating the required number of customers for each flight.

This involves:

1. Calculating the fixed cost per flight, which is $250, as demonstrated earlier
2. Assuming an average data consumption of 100 MB per customer per flighy
3. Assuming that the revenue per customer on each flight remains constant at $15.

I hope this clarification addresses any concerns. I think it's only a matter of understanding that “flight” is a different concept of “plane”.

If you have any further questions or require additional clarification, please do not hesitate to reach out to me via direct message.

Best,

Antonio

Hi there!

I see Antonio already gave you a great answer. If you have any follow-ups, let us know. 

Aside from this, here are a few other cases to look into:

https://www.preplounge.com/en/management-consulting-cases/interviewer-led-mckinsey-style/intermediate/mbb-second-round-codewave-employee-turnover-challenge-304

https://www.preplounge.com/en/management-consulting-cases/candidate-led-usual-style/advanced/mbb-first-round-soy-technologies-303

https://www.preplounge.com/en/management-consulting-cases/interviewer-led-mckinsey-style/intermediate/element-mobile-expands-into-refurbished-phones-mbb-2nd-round-302

Best,
Cristian