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Breakeven calculation

breakeven
Most recent answer on Sep 01, 2023
The best answer (on Oct 02, 2021) is from:
Francesco
Expert
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching
Francesco
Expert
gave the best answer on Oct 02, 2021
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching
Hi there, You should take into account two things to calculate the breakeven: Revenues and costs directly related to the new system and Additional revenues and costs due to synergies and cannibalization on current opera ... (read entire answer)
7
Answers
724
Views
71
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

difference between payback period and breakeven calculations

business model
Most recent answer on Aug 31, 2023
The best answer (on Oct 25, 2021) is from:
Francesco
Expert
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching
Francesco
Expert
gave the best answer on Oct 25, 2021
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching
Hi there, The payback period refers to the time needed to recover an investment.  The breakeven point refers to the situation where total revenues are equal to total costs. The question is normally related to the quanti ... (read entire answer)
6
Answers
7.3 k
Views
33
Total Upvotes
on Aug 31, 2023 on Aug 31, 2023
Last Activity

Question Breakeven

Bain
Most recent answer on Aug 31, 2023
Anonymous gave the best answer on Aug 28, 2020
Plenty of people are rejected due to this breakeven question type. This is super easy with this structure ^^ STRUCTURE RULES Structure the breakeven equation first. Define the breakeven metric. Calculate each component ... (read entire answer)
3
Answers
2.8 k
Views
8
Total Upvotes
on Aug 31, 2023 on Aug 31, 2023
Last Activity

Breakeven calcukation

business concepts
Most recent answer on Sep 01, 2023
The best answer (on Nov 09, 2021) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
gave the best answer on Nov 09, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, I try to avoid blanket statements, but yes, if they want you to figure out how many x you need for y, that's pretty much always a breakeven.  Sometimes you'll have to calculate based on margins. Other times on ... (read entire answer)
5
Answers
2.1 k
Views
33
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

Breakeven

OnlineGo
Most recent answer on Sep 01, 2023
The best answer (on Sep 01, 2023) is from:
Clara
Expert
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Clara
Expert
gave the best answer on Sep 01, 2023
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Hello! Precisely for the high amount of questions (1) asked by my coachees and students and (2) present in this Q&A, I created the “Economic and Financial concepts for MBB interviews”, recently published in PrepLoun ... (read entire answer)
3
Answers
2.0 k
Views
7
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

Having issues with breakeven equation

breakeven
Most recent answer on Sep 01, 2023
The best answer (on Sep 01, 2023) is from:
Clara
Expert
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Clara
Expert
gave the best answer on Sep 01, 2023
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Hello! Precisely for the high amount of questions (1) asked by my coachees and students and (2) present in this Q&A, I created the “Economic and Financial concepts for MBB interviews”, recently published in PrepLoun ... (read entire answer)
4
Answers
1.6 k
Views
8
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

breakeven for a year

business concepts
Most recent answer on Sep 01, 2023
The best answer (on Nov 10, 2021) is from:
Pedro
Expert
Bain | Roland Berger | EY-Parthenon | Mentoring Approach | 30% off first 10 sessions in May| Market Sizing | DARDEN MBA
Pedro
Expert
gave the best answer on Nov 10, 2021
Bain | Roland Berger | EY-Parthenon | Mentoring Approach | 30% off first 10 sessions in May| Market Sizing | DARDEN MBA
Yes, you have the math right. And yes, you may be asked to calculate breakeven for specific years. These are what-if scenarios, i.e., if I wanted to break even in only two years, how much would I have to sell. In realit ... (read entire answer)
4
Answers
1.1 k
Views
31
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

When a case does not give an objective (e.g. breakeven point), how should we make a final recommendation?

BCG Case: Nearshoring - Opportunity study and Business case
Most recent answer on Nov 11, 2023
The best answer (on Aug 29, 2020) is from:
Sidi
Expert
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Sidi
Expert
gave the best answer on Aug 29, 2020
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Hi! Let me first point out a general thing, and then comment on your suggestion. I. General Remark A case without an objective can not be solved with a definite anwer. So at the beginning, the objective must be ag ... (read entire answer)
4
Answers
1.1 k
Views
29
Total Upvotes
on Nov 11, 2023 on Nov 11, 2023
Last Activity

How do you find the breakeven point in price?

break-even analysis
Most recent answer on Sep 01, 2023
The best answer (on Sep 07, 2019) is from:
Vlad
Expert
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Vlad
Expert
gave the best answer on Sep 07, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Hi, BE(0) = (Price - Variable costs)*Qty - Fixed costs So you need to plug in VC, FC, and quantity of units sold. Best
3
Answers
2.1 k
Views
8
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

Explanation of Breakeven Analysis

TKMC Case: Portfolio expansion in the material trade business
Most recent answer on Sep 01, 2023
The best answer (on Mar 18, 2023) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
gave the best answer on Mar 18, 2023
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, Actually, this questions was already asked in German here! https://www.preplounge.com/en/consulting-forum/nwc-15084 Here's the translation from coach Hagen: “The NWC for building up the opening stock is EUR 32 ... (read entire answer)
4
Answers
650
Views
38
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

Hotel breakeven

Fixed and Variable Costs – Test Your Knowledge
Most recent answer on Sep 01, 2023
The best answer (on Sep 01, 2023) is from:
Clara
Expert
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Clara
Expert
gave the best answer on Sep 01, 2023
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Hello! Precisely for the high amount of questions (1) asked by my coachees and students and (2) present in this Q&A, I created the “Economic and Financial concepts for MBB interviews”, recently published in PrepLoun ... (read entire answer)
3
Answers
448
Views
9
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

How to structure a framework for investment cases? (go or no-go decision)

Framework Investment
Most recent answer on Sep 01, 2023
Anonymous gave the best answer on Mar 27, 2018
Hey anonymous, This framework seems quite interesting for approaching such problem, I would add two dimensions throughout your points: 1) include regulations and other barriers to entry/expansion 3) analysis on ke ... (read entire answer)
4
Answers
16.7 k
Views
18
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

BREAK EVEN POINT=N. OF YEARS

BCG 1st round BCG McKinsey and Bain break-even break-even analysis HelpASisterOut MBB
Most recent answer on May 01, 2020
The best answer (on Mar 31, 2020) is from:
Daniel
Expert
McKinsey / ex-Interviewer at McKinsey / I will coach you to rock those interviews
Daniel
Expert
gave the best answer on Mar 31, 2020
McKinsey / ex-Interviewer at McKinsey / I will coach you to rock those interviews
Payback period = investment costs / cash flow per year (revenue-costs) = how many years you need to get back what you invested Break-even in years = fixed costs = (revenues - variable costs) = at what year you will ac ... (read entire answer)
6
Answers
14.8 k
Views
29
Total Upvotes
on May 01, 2020 on May 01, 2020
Last Activity

McKinsey Sample Case - Logic Question...

case math Math problem McKinsey Value Chain
Most recent answer on Sep 01, 2023
Anonymous gave the best answer on Apr 11, 2017
Hi there, Let me chime in here. First, try to think of this problem in terms of the expected value of the candidate drug: Expected Value = Likelihood of success * Present Value (in case of success) Second, with ... (read entire answer)
2
Answers
8.7 k
Views
16
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

NPV - ROI : can someone help me in understanding the difference in usage?

Investment NPV ROI calculation
Most recent answer on Sep 01, 2023
Anonymous gave the best answer on Nov 09, 2018
OK, an answer on this could fill a book, but I'll do my best. NPV means, as you surely know, the Net Present Value of a series of Cash Flows (from an investment for example). That means that all cash flows resulti ... (read entire answer)
2
Answers
7.9 k
Views
8
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

Case math practice

BCG Bain McKinsey
Recent activity on Sep 14, 2020
The best answer (on May 21, 2020) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
gave the best answer on May 21, 2020
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
100% Recommend Rocket Blocks. It's exactly what you're looking for https://www.rocketblocks.me/ In addition to that, you can ask other PrepLoungers to case you on chart/math-heavy cases. You can also search for thos ... (read entire answer)
7
Answers
4.0 k
Views
21
Total Upvotes
on Sep 14, 2020 on Sep 14, 2020
Last Activity

Case Math Prep

Case Interview case interview preparation case math Case Prep math
Most recent answer on Sep 01, 2023
The best answer (on Jul 27, 2018) is from:
Vlad
Expert
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Vlad
Expert
gave the best answer on Jul 27, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Hi, Pls find below my list 1) Case math Practice common market sizing topics (Airport passenger flow, real estate volumes, subway passenger flows, car usage, etc.). You should become comfortable with making assump ... (read entire answer)
2
Answers
3.9 k
Views
10
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

Population density

Bain round 2 Market sizing
Most recent answer on Sep 01, 2023
Anonymous gave the best answer on Jun 06, 2018
Hey there, You need to work out the breakeven volume of baskets for the store (including making some assumptions about payback period), and then extrapolate the purchase volume into population (by making some assumpti ... (read entire answer)
4
Answers
3.4 k
Views
14
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

Approach Method: How would an experienced consultant approach a Revenue Decline Problem?

Declining Profitability Case growth analysis Revenue analysis sales
Most recent answer on Sep 01, 2023
Anonymous gave the best answer on Oct 24, 2018
Hi Mike / Mustafa, interesting case. On a general note: In any kind of subscription business (like Madflix) an interesting analysis to conduct is a cohort analysis. So how do KPIs (revenue, churn, ...) for custome ... (read entire answer)
2
Answers
2.8 k
Views
9
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

Case Challenge: Pharmaceutical Company, R&D Pipeline Value, Successful Rate

break-even analysis case question McKinsey pharma and health care cases
Most recent answer on Jun 17, 2020
The best answer (on Jun 17, 2020) is from:
Luca
Expert
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached
Luca
Expert
gave the best answer on Jun 17, 2020
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached
Hello Jing, This is a nice example of how you can use the "Expected value" theory. Let me try to clarify the solution: The value of a successfull candidate drug is 1.2 B$ What is the expected value of a drug s ... (read entire answer)
4
Answers
2.8 k
Views
21
Total Upvotes
on Jun 17, 2020 on Jun 17, 2020
Last Activity
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