I have a question regarding some information another user posted in 2016:
He provided information about a case that was given in the second round of BCG.
"Your client is a german car rental company, charges 250 Euro for renting out a mercedes s-class. the customer can ride 300km for free and gets charged an additional fee for every extra-km. how much should our client charge in order to achieve the same profit margin for the first 300km as for every km thereafter.
very unconventional case; key is costs=purchase price mercedes s-class - sale price mercedes s-class after 20 Th driven km. (70000-60000 = 10000). thus costs (for each km)=10000D/20000km=0.5D/km"
I struggle to understand the approach that he suggested. Could someone elaborate? I do not see how the 20k km should be meaningful here.
Thank you :)