Can't we directly divide the total store sales with average expense per person to determine the number of customers ?

Case Calculations case question Mergers&Acquisitions SuperBurger
New answer on Dec 23, 2019
1 Answer
1.5 k Views
Ravi asked on Sep 13, 2019

Once we calculate the average number of customers (Total store sales/average spending per person) we can double the customer number to get the no. of customers in 5 years, followed by multiplying it by 20 to get the total store sales after 5 years and dividing it by (2.5*no. of stores presently) to the sales/store

Overview of answers

Upvotes
  • Upvotes
  • Date ascending
  • Date descending
Best answer
Luca
Expert
Content Creator
replied on Dec 23, 2019
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Hello Ravi,

You are right, you can obtain the same result using your way.
You will find a different number just because in the case resolution the intermediate results are rounded.

Hope it helps,
Luca

Was this answer helpful?
Luca gave the best answer

Luca

Content Creator
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached
59
Meetings
2,939
Q&A Upvotes
32
Awards
5.0
19 Reviews