Ok guys, it is really painfull to ask, because the question is easy, but I need help anyway:
I need the cost price of a Liter Beer:
1 Liter has the price to costumer 10€
Margin is 200 % in one distribution area and 150% in another distribution area
How do I calculate the cost for a liter Beer out of this?
(I know the answer should be 1.33 - but how do I get there?)
I would work backwards. But first, let's start with simple stuff. If the cost is €1 and the margin is 200%, this means that the sale price is €3 -> cost price x (1 + margin). So working backwards it is (whole)sale price / (1 + margin).
In your case:
€10 / (1 + 200%) = €10 / 3 = €3.33 and from there...
€3.33 / (1 + 150%) = €3.33 / 2.5 = €1.33
(edited)
Thanks a lot! I think, i just saw, what I missed out: Take it as a two step approach... THANKS a lot! — Katharina on Mar 15, 2018
Hi,
Not sure I understand correctly. First of all, what is "cost price"?
Secondly, Margin cannot be 200%. Simply because the margin is a % of price.
Best,
(edited)
Hey Vlad, the data is 1:1 from a case coaching I just had, so this is correct - margin in this case means profit margin. Maybe I missused the wording. — Katharina on Mar 15, 2018
Our client is SmartBridge, a nonprofit educational institution offering face-to-face tutoring services. The client operates in the US. The mission of SmartBridge is to help as many students as possible to complete studies and prevent that they drop from the school system, in particular in disadvant ... Open whole case
We are an airline major operating out of India. We want to increase the number of passengers on all our flights. Could you please calculate the financial return of adding one more passenger per flight? Open whole case
Your client, REA, is a reinsurance company. REA recently acquired another reinsurance company (approximatively same size): the choice of this company was notably based on its product portfolio as well as its market presence which appeared complement with REA. However, the acquisition is not well r ... Open whole case
Our client is a BlissOttica, an Eyewear Manufacturer that is looking to reach a 10% increase in profits. How would you help our client? Open whole case
Our client is Energy England, one of northern England’s largest electric utility companies. They were created over the past decade through an aggressive series of mergers of existing utility companies each specializing in a single energy generation source. Recently, the CEO has embarked on an initi ... Open whole case
The World’s #1 Selling Online Course for Quantitative Case Prep 
