Verabrede dich zum Casen über das Meeting-Board, nimm an Diskussionen in unserem Consulting Q&A teil und finde gleichgesinnte Interview-Partner:innen, um dich auszutauschen und gemeinsam zu üben!

Anonym A

am 6. Sept. 2017

Global

Yale case book wrong answer - would like to confirm

Hi, There is a case on Yale case book, the answer says: "Our client will save $6,000/year in costs and suffer a maximum reduction of $1,500/year in profits. This is a net gain of $4,500/year". Just want to clarify this statement is wrong. The net gain should be 1500/year, not 4500/year.

Thanks

Freda

3,3k

Schreibe die erste Antwort!

Bisher hat niemand auf diese Frage reagiert.

Beste Antwort

Anonym B

am 6. Sept. 2017

Hi Freda,

I disagree with your interpretation.

Look at both components individually:

If you save $6000 in costs, your net gain is $6k.

If you lose $1.5k in profits, your net loss is $1.5k.

Add both numbers and find the answer to be correct.

Best
Björn

2 Kommentare

Freda

am 6. Sept. 2017

Thank you!

Marie

am 26. Sept. 2017

Hi, thank you for this answer! I am actually also struggling to understand the solution of this case, and why the company would experience a "net gain" by shutting down one product segment that has a profit of $1,500/year and a cost of $6,000/year. When does it make sense to stop one product segment to reduce costs, when this specific product is still profitable? I guess it depends on the profit margin of the other products; any thoughts on that?

Ähnliche Fragen

Consulting

OC&C Questions for 2024 Associate Consultant

am 10. Okt. 2023

Global

2,6k