Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Back to overview

If Shipping costs are reduced by 20% shouldnt the cost be 16 not 4(which is 20% of 20...)

2
1.6k
10
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Luca
Coach
on Jan 21, 2020
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Hello Justus,

In the text is written that

A consolidation of suppliers reduces transport costs by EUR 4 million (EUR 20 million * 20%)

As you may notice, the author talks about a reduction of costs 4M€, It means that, as you were suggesting, the new cosi is: Original cost - Reduction = 20M€ - 4M€= 16 M€.

Does it make sense?

Best,
Luca

on Jun 09, 2020
Hello, i think that the 20% should be applied to the cost of transportation of the new sales volume which is 501,5 M. Therefore, the cost reduction will be 20% * 501.5*0,03 = 3M. 0,03 being the transport cost per sale. Am I wrong?
Clara
Coach
on Jan 21, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Indeed!

The 20% is precisely 4 M, so the new figure is 16 (20 - 4 = 16 M)

Cheers!

Similar Questions
Consulting
Just did the Mckinsey Solve Game (January 2025) - got some questions/insights
on Apr 24, 2025
Global
5
4.1k
Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 8+ years consulting, 8+ years coaching and 7+ years interviewing experience
42
5 Answers
4.1k Views
+2
Consulting
Want IAPP AIGP (Artificial Intelligence Governance Professional) Exam sample Questions
on Apr 14, 2025
Global
4
2.6k
Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 8+ years consulting, 8+ years coaching and 7+ years interviewing experience
56
4 Answers
2.6k Views
+1
Consulting
Change career from pharma to consulting
on Jun 11, 2024
Global
9
3.2k
Top answer by
Ariadna
Coach
BCG | Project Leader and Experienced Interviewer | MBA at London Business School
76
9 Answers
3.2k Views
+6
How likely are you to recommend us to a friend or fellow student?
0 = Not likely
10 = Very likely
Thanks for your feedback! Your opinion helps us make PrepLounge even better.