# Get Active in Our Amazing Community of Over 465,000 Peers!

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

# Is anyone able to help with the calculation that goes into the Shoe Manufacturing Case study

McKinsey profitability shoe Wharton
New answer on Jun 12, 2020
3 Answers
2.4 k Views

Unfortunately I am not getting the same unit profit that is listed below. If anyone could help with this calculation on how I may get the right answer

My calcs were 200 - (.3+.25+.2+.04+.01+.1)*200 for the US and similar for the vietnam but that gets me \$20. I am thinking maybe i took into account the retail margin and/or the defect rate incorrectly

(edited)

## Overview of answers

Upvotes
• Upvotes
• Date ascending
• Date descending
• Best answer

Hello Alek,

I agree with you, proposed solution sounds weird. I think the only explanation can be that they want to know the profit per shoe and you are calculating the profit per pair of shoes (basically you have to consider only 100\$ as revenues an half of the total).
Is it clear?

Hope it helps,
Luca

Was this answer helpful?

Hey Alek,

Could you provide us your numbers / calculations so we can see if there's anything you're doing wrong?

Was this answer helpful?

Hi Ian - My calcs were 200 - (.3+.25+.2+.04+.01+.1)*200 for the US and similar for the vietnam but that gets me \$20. I am thinking maybe i took into account the retail margin and/or the defect rate incorrectly

Hello!

I don´t understand which one is your approach, could u 1st share and then we problem-solve with the community?

Cheers,

Clara

Was this answer helpful?
Luca gave the best answer
Content Creator
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached
66
Meetings
3,163
Q&A Upvotes
33
Awards
5.0
20 Reviews
How likely are you to recommend us to a friend or fellow student?
0 = Not likely
10 = Very likely
You are a true consultant! Thank you for consulting us on how to make PrepLounge even better!