Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Back to overview

Bain Business Case

Hi,

This is a question from Bain sample case. I attach the question and relevant graphs below. Would appreciate if someone can give me hints on how to solve this problem. Thank you very much!

3
2.7k
22
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Ian
Coach
on Jan 25, 2021
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

You need to calculate the import parity price from the last exhibit (2.0 + .5 times 10%)

Then, calculate the total costs of production (material 1 and 2) from the 1st exhibit

Finally, look at the amount of product produced, the total cost for it, and the total revenue to get your answer!

on Feb 24, 2023
Hi Ian, Price = (2k+0.5k) * 1.1 = 2.75k per ton Revenue = 10k * 2k(local) + 18k * 2.75k (export) = 69.5m VC = 1.5k*14kty + 1k*18kt = 39m FC = 14m EBITDA = 69.5 - 39 -14 = 16.5m which doesnt match any of the answer However, if for the export price I do: Price = 1.5k + 0.4k * 1.0666 = 2.02k Keep everything else constant EBITDA = 56.36 - 39 -14 = 3.36 which is still off but a bit closer. I feel I've completely missed something here - keen to get your thoughts
Clara
Coach
on Jan 26, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Could you share where you obtained this?

Cheers, 

Clara

on Jan 27, 2021
Yes
on Jan 27, 2021
https://mconsultingprep.com/wp-content/uploads/2019/10/Business-Case-Test-2-Question-fixed.pdf
on Jan 27, 2021
https://mconsultingprep.com/wp-content/uploads/2019/10/Business-Case-Test-2-Context.pdf
on Apr 25, 2023

option 1: EBITDA is -928.57k

option 2: EBITDA is +1M

so should be C?

1
Similar Questions
Consulting
Stating your initial hypothesis
on May 18, 2024
Global
8
2.0k
Top answer by
Pedro
Coach
Bain | EY-Parthenon | Former Principal | 1.5h session | 30% discount 1st session
50
8 Answers
2.0k Views
+5
Consulting
Can I still get an offer? MBB final round, almost finished one case but didn't.
on Aug 23, 2024
Global
7
1.9k
Top answer by
Pedro
Coach
Bain | EY-Parthenon | Former Principal | 1.5h session | 30% discount 1st session
59
7 Answers
1.9k Views
+4
Consulting
Bain case interview format ACI (DACH) 2024
on May 02, 2024
Global
8
1.6k
Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 8+ years consulting, 8+ years coaching and 7+ years interviewing experience
33
8 Answers
1.6k Views
+5
How likely are you to recommend us to a friend or fellow student?
0 = Not likely
10 = Very likely
Thanks for your feedback! Your opinion helps us make PrepLounge even better.