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Anonymous A

on Mar 02, 2023

Global

Question about

Gross margin

How is the gross margin (%) calculated in this case?

800+

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Top answer

Hagen

Coach

edited on Mar 03, 2023

#1 recommended coach | >95% success rate | 8+ years consulting, 8+ years coaching and 7+ years interviewing experience

Hi there,

I would be happy to share my thoughts on it:

While I did not find any information about how the gross margin is calculated in this specific case study, I would advise you to assume that it follows the standard of dividing the gross profit by revenues.

If you would like a more detailed discussion on how to best prepare for your upcoming interviews, please don't hesitate to contact me directly.

Best,

Hagen

Andi

Coach

on Mar 05, 2023

BCG 1st & Final Round interviewer | Personalized prep with >95% success rate | 7yrs coaching | Experienced Hires

Hi there,

please stick to the normal way of deriving Gross Margin - this is a very standard accounting metric.

Gross Margin (in %) = Gross Profit / Revenue
Gross profit (in $) = Revenue - Cost of Goods Sold (COGS)

Regards, Andi

Pedro

Coach

on Mar 03, 2023

Bain | EY-Parthenon | Former Principal | 1.5h session | 30% discount 1st session

Gross Margin = (Sales - COGS) / Sales

Ian

Coach

on Mar 03, 2023

Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

Just a random guess, but this probably has something to do with it :)