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Margin question

Incos Pens
New answer on Aug 30, 2021
1 Answer
981 Views
Anonymous A asked on Aug 29, 2021

Hi, 

Why are we considering only 10% margin and not 30% of gross profit margin?

Thanks

 

(edited)

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Best answer
Ian
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replied on Aug 30, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

As the case states: “Margins after marketing expenses are on average 10%.” So, we need to consider this in our calcs.

Make sense? Or are you confused as to why we're including marketing expenses in the first place?

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Anonymous A on Aug 30, 2021

I am confused about why they only apply 10% margin and they do not apply 30% as well. Shouldn't it be revenues*30%*10%? Many thanks

Ian gave the best answer

Ian

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