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5

Quant: Cost Question

Hi,

Can you please advise on how to set up the following problem?

Daisy Cosmetics store chain, which already has 8 stores, is about to expand by opening 5 more stores on different streets. The upfront costs to open these new stores are $39,000 in total. All other operating costs are the same as those of current stores, with the structure as follows: Operation costs: 15%, marketing costs: 10%, cost of goods sold: 45%, labor cost: 20%, and other costs: 10%. Total revenue of all stores during the first month after opening 5 new stores was $356,000, with the profit margin being 32%. Calculate the average cost of each current and new store (new store’s cost includes the upfront cost of opening ).

Many thanks!

Hi,

Can you please advise on how to set up the following problem?

Daisy Cosmetics store chain, which already has 8 stores, is about to expand by opening 5 more stores on different streets. The upfront costs to open these new stores are $39,000 in total. All other operating costs are the same as those of current stores, with the structure as follows: Operation costs: 15%, marketing costs: 10%, cost of goods sold: 45%, labor cost: 20%, and other costs: 10%. Total revenue of all stores during the first month after opening 5 new stores was $356,000, with the profit margin being 32%. Calculate the average cost of each current and new store (new store’s cost includes the upfront cost of opening ).

Many thanks!

5 answers

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Best Answer

Total Revenue = 356,000
Profit Margin = 32%

Profit Margin = 32% = (Revenue - Cost)/Revenue = (356,000 - Cost)/356,000

Cost = $242,080

Taking account the upfront cost for the new stores, so

$242,080 - $39,000 = $203,080

$203,080 / 13 stores = $15,621 cost/store

Not sure about this since I didn't use the cost structure breakdown provided.

Total Revenue = 356,000
Profit Margin = 32%

Profit Margin = 32% = (Revenue - Cost)/Revenue = (356,000 - Cost)/356,000

Cost = $242,080

Taking account the upfront cost for the new stores, so

$242,080 - $39,000 = $203,080

$203,080 / 13 stores = $15,621 cost/store

Not sure about this since I didn't use the cost structure breakdown provided.

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Hi,

I have a hunch that you're the same person that has asked the 3 other quant questions!

I think you're approaching this wrong (if I may).

Rather than spamming the Q&A to get the answer, you need to learn the logic.

Same goes with case types (you can't just memorize every case framework out there...you have to learn how to think about every case prompt individually).

So, I highly recommend you ernestly try to solve each of these problems on their own.Then, post here with your reasoning/thinking and then we can comment on that.

You're not going to ace the case by getting every answer to every question in the world. Rather, you'll learn by figuring out how to think about each one you see! Also, a coach can help you with this :)

Hi,

I have a hunch that you're the same person that has asked the 3 other quant questions!

I think you're approaching this wrong (if I may).

Rather than spamming the Q&A to get the answer, you need to learn the logic.

Same goes with case types (you can't just memorize every case framework out there...you have to learn how to think about every case prompt individually).

So, I highly recommend you ernestly try to solve each of these problems on their own.Then, post here with your reasoning/thinking and then we can comment on that.

You're not going to ace the case by getting every answer to every question in the world. Rather, you'll learn by figuring out how to think about each one you see! Also, a coach can help you with this :)

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Hi, Here some free link to practice with other quantitative test (SHL standard)
- https://www.gradtests.com.au/test/starttest/TestType/2/TestId/45/practice/1
- https://www.wikijob.co.uk/aptitude-test/verbal-reasoning-practice
- https://www.practiceaptitudetests.com/sign-up/programme/shl
- https://www.shldirect.com/en/practice-tests
- https://www.jobtestprep.co.uk/jobtestprep/testPlayer.aspx?atr=1&skinid=9&localeSetting=en-GB&sLanguage=en-GB&test_id=E_FreeSHL_Numerical&mode=timed&template=FreeTestTemplate&endURL=%2ffree-shl-numerical-test-results-page&endURLName=Exit+Test&cancelURLName=Exit+Test&cancelURL=signout.aspx&ReturnURL=%2fmaster-ceb-shl-numerical-test&layoutype=1&layoutype=1&testTitle=Free+SHL-Style+Numerical+Test&adPageID=&itemCode=E_FreeSHL_Numerical

Best,
Antonello

Hi, Here some free link to practice with other quantitative test (SHL standard)
- https://www.gradtests.com.au/test/starttest/TestType/2/TestId/45/practice/1
- https://www.wikijob.co.uk/aptitude-test/verbal-reasoning-practice
- https://www.practiceaptitudetests.com/sign-up/programme/shl
- https://www.shldirect.com/en/practice-tests
- https://www.jobtestprep.co.uk/jobtestprep/testPlayer.aspx?atr=1&skinid=9&localeSetting=en-GB&sLanguage=en-GB&test_id=E_FreeSHL_Numerical&mode=timed&template=FreeTestTemplate&endURL=%2ffree-shl-numerical-test-results-page&endURLName=Exit+Test&cancelURLName=Exit+Test&cancelURL=signout.aspx&ReturnURL=%2fmaster-ceb-shl-numerical-test&layoutype=1&layoutype=1&testTitle=Free+SHL-Style+Numerical+Test&adPageID=&itemCode=E_FreeSHL_Numerical

Best,
Antonello

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Hello, the most important aspect of solving such questions is not that you just tind here the right number. of calculating. You need to understand a way of how to solve it, so I mean that you need to improve your logical skills and understand to find an appropriate approach to make a solution and how to answer difficult questions.

Was it helpful?

GB

Hello, the most important aspect of solving such questions is not that you just tind here the right number. of calculating. You need to understand a way of how to solve it, so I mean that you need to improve your logical skills and understand to find an appropriate approach to make a solution and how to answer difficult questions.

Was it helpful?

GB

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Hello!

It´s an easy one if you solve it in an Excel line by line tbh.

However, you won´t have these questions when preparing for MBB.

Best,

Clara

Hello!

It´s an easy one if you solve it in an Excel line by line tbh.

However, you won´t have these questions when preparing for MBB.

Best,

Clara

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