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
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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

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Luca
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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

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Luca

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