Am I wrong?

Case Maths
New answer on Feb 11, 2020
7 Answers
742 Views
Anonymous A asked on Feb 09, 2020

Hello Everyone!

I can't seem to find the right answer to the following case question:

World Cinema is going to make an investment of $255 000 to open 3 new cinema rooms. 30% of the total investment will go to marketing costs, which equals three-fourths of the construction costs. The remaining amount goes to operation costs of the 3 cinema rooms in 1 year. How much does it cost to operate 1 cinema room in a month?

After calculation, I find Marketing Costs (76 500$), Construction Costs (102 000$) and Total Operation Costs for 3 cinema rooms in a year (76 500$) so Operation Costs for 1 cinema room in a month (2 125$).

Does someone know why is the solution supposed to be 2 550$?

Thanks in advance for your insights!

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Sidi
Expert
replied on Feb 10, 2020
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 300+ candidates secure MBB offers

Agree with you and Vlad on the result. The given solution seems flawed.

Cheers, Sidi

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Vlad
Expert
Content Creator
replied on Feb 09, 2020
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

Got 2125 as well

Best

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Antonello
Expert
Content Creator
replied on Feb 11, 2020
McKinsey | MBA professor for consulting interviews

No, you are not wrong :)

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Luca
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replied on Feb 11, 2020
BCG |NASA |20+ interviews with 100% success rate| 120+ students coached |GMAT expert 780/800 score

I confirm 2125$

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Clara
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Content Creator
replied on Feb 10, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Agree with your result.

Do you know the source of the case? Worth double-checking with them where the discrepancies come from (I don´t think that someone who publishes a case makes a silly mistake like this, there must be a piece of info that got lost in the way)

Cheers,

Clara

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Anonymous replied on Feb 10, 2020

Confirmed, I've got the same number as others.

Good luck,

André

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Ian
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Content Creator
replied on Feb 10, 2020
BCG | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Same as the others here. Note that ~5% of cases in my experience have some kind of math error...the creators are human after all!

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Sidi gave the best answer

Sidi

McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 300+ candidates secure MBB offers
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