Am I wrong?

Case Maths
Recent activity on Feb 11, 2020
7 Answers
1.5 k 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!

Overview of answers

Upvotes
  • Upvotes
  • Date ascending
  • Date descending
Best answer
Sidi
Expert
replied on Feb 10, 2020
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers

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

Cheers, Sidi

Was this answer helpful?
Vlad
Expert
replied on Feb 09, 2020
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

Got 2125 as well

Best

Was this answer helpful?
Antonello
Expert
Content Creator
replied on Feb 11, 2020
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

No, you are not wrong :)

Was this answer helpful?
Luca
Expert
Content Creator
replied on Feb 11, 2020
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

I confirm 2125$

Was this answer helpful?
Clara
Expert
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

Was this answer helpful?
Anonymous replied on Feb 10, 2020

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

Good luck,

André

Was this answer helpful?
0
Ian
Expert
Content Creator
replied on Feb 10, 2020
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

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!

Was this answer helpful?
Sidi gave the best answer

Sidi

McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
429
Meetings
5,788
Q&A Upvotes
78
Awards
5.0
134 Reviews
How likely are you to recommend us to a friend or fellow student?
0
1
2
3
4
5
6
7
8
9
10
0 = Not likely
10 = Very likely