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Anonymous A
on Dec 29, 2024
Europe
Question about
Case
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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
Vinicius
Coach
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 

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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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