Math question form ATK potential test

AT Kearney
New answer on Dec 01, 2019
1 Answer
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Anonymous A asked on Sep 30, 2019

Hello,

Could you please advise on how to calculate this? ATK doesn't give a detailed solution. Thank you

"Ana sells at school cookies prepared by her mother. She buys the cookies from her mother at the same cost her mother has for preparing them. However, her mother has an extra discount which brings her real cost down by 15%. Ana's profit margin in 30% from the price she sells it to her colleagues. What share of her mother's discounted cost is Ana's profit?"

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Francesco
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replied on Dec 01, 2019
#1 Coach for Sessions (4.000+) | 1.400+ 5-Star Reviews | Proven Success (➡ InterviewOffers.com) | Ex BCG | 9Y+ Coaching

Hi Anonymous,

you can consider the following steps:

  • Assume cost for Ana is 100
  • This implies her mother has a real cost of 85
  • Since Ana sells at 30% profit margin, the price is derived by the following formula: x-100)/x=0.3 à x=143
  • The ratio of profits on her mother cost is thus 43/85= 50.5%

Best,
Francesco

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Francesco

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