Hello,

I see you already got an answer here, so just an additional piece of advice: 

Per Hagen's answer, it seems like the reasoning behind the required revenue increase here hinges on an assumption (i.e., under the assumption that the operating profit margin stays constant). 

This is an assumption made in the case, it is not self-evident. As you point out, there's no obvious reason for the revenue increase to be the same as the cost increase ex-ante, without this assumption. So whenever you hear/see/make assumptions like this during a case, be sure to keep track of them to prevent confusion later on in the case.

Hi there,

Of course Hagen can best answer his own case :)

When you're case prepping, make sure you're getting very clear on the nuance between terms. Percentage versus percentage points, profit versus margin, return on investment (across multiple years) versus goal of growth revenues (in a given year)!

Hi there!

I see you already got the answer below!

In case you are struggling with some of the terms, here is a guide that synthesises all of the most common terms that you should know for consulting interviews:

• Free Guide: The Must-Know Consulting Terms for Interviews

Best,
Cristian

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