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Anonymous A

on Jan 09, 2025

USA

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Can someone please explain how to calculate the variable costs for the different regions?

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Han

Coach

on Jan 09, 2025

Ex-Mckinsey EM | General consulting and technical case coaching | Free 15mins intro

Below is an example, wondering what you missed was the 1/30 and 1/20 manufacturer usage in each region.

For Americas, it is:

12000*0.3*0.6*50000/30 = 3.6m

Most commonly omited factor is the below one, that case you may got 108m instead (using Americas as an example)

Feel free to reach out if any follow up Qs, cheers!

Han