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Anonymous A
on Dec 29, 2024
Europe
Question about

Can someone explain the calculation of the revenue and the variable costs for the different regions?

I'm not sure how to calculate the revenue in Question 2.2.
e.g. for America:
(50k * 40%)cars * 21k (price per car) * 30% (regional volume America) = 56,3 M Euro

BUT: the solution shows a revenue of 6,3 M Euro for America. 
Can someone please explain to me how this is calculated?
 

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Top answer
on Dec 30, 2024
Ex-BCG Project Leader (Energy + Climate & Sustainability) | Experienced Interviewer

Hi there -- here is the formula to get to 6.3M 

[Cars Sold] x [% in Region] x [% US of Region] x [% Customized] x [Price] 

50k x 60% x 30% x 1/30 x 21k = 6.3m 

Thabang
Coach
edited on Jan 08, 2025
Ex-McKinsey Consultant | McKinsey Top Coach & Interviewer | Special Offer: Buy 1 Session Get 1 Free (Limited time!)

Hey there, 

Vinicius is spot on. 

In your calculation:

  • You should have used 60% for the US instead of 40%
  • You missed the allowance for Expected AMG Manufacture usage for cars sold there i.e. multiplying the 1/30

You'd get to the 6.3m Euro in your answer with this adjustment

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