Hello, I am struggling to figure out the answer to this question from BCG Online Case library:

**By what percentage does the client need to increase the average ticket price to maintain its profits?**

**You are given the following information:**

**Sales: $1,500 millions****Profit margin: 20%****Expected fuel price increase: 50%****Current fuel costs are half as high as non fuel costs**

We are looking the percentage increase of the revenue that will keep our 20% margin.

Old cost= 800 (Non fuel cost) +400 (Fuel cost) = 1200

New cost=800 + 600 = 1400

Therefore the new equation should be:

(1500+x)-1400=0.2(1500+X)

I would need some help figure out what is wrong in my equation.

The answer is supposed to be 13.3%

Thanks a lot for your help

Hi, could you please explain why your fuel and non-fuel costs are 800 and 400, not 720 and 480? I get these and then my percentage increase of revenue is 26% Thank you for your help:) — Anonymous C on Oct 09, 2019 (edited)

It says "Current fuel costs are half as high as non fuel costs" — Anonymous D on Jan 27, 2020