This case is all about realizing that the client is concerned for no reason because the new retirement home in Munich has a higher profit margin than the older retirement home in Berlin.
To arrive at this conclusion, the interviewee should use the profitability framework (revenue minus costs) to uncover all necessary information.
One of the first clarifying questions the interviewee should ask is obvious: if the company is already 5 years old and just opened a home in Munich, what other homes has it run? The interviewer should state that the company has only run one other home in Berlin.
The only true var. costs are the var. cost per occupied apartment!
More questions to be added by you, interviewer!
At the end of the case, you will have the opportunity to suggest challenging questions about this case (to be asked for instance if the next interviewees solve the case very fast).