I have just been through this case in a meeting as an interviewer, but both me and my interviewee came up with different numbers for the changes in profitability. Is this a mistake of the numbers in the case, the formula (changes in profitability = changes in sales * profit margin) or our understanding of profit margin and calculation of profitability?
E.g, for seatbelts, if the profit margin is 50 %, and the change in sales is - $90 Mio, shouldn't the change in profitability be $-90 Mio*0,5 = -$45 Mio of this, and not -$23 Mio?
Thank you for your help :)
Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Back to overview
30
194
338
Global
Calculation of Change in Profitability
1
3.1k
Be the first to answer!
Nobody has responded to this question yet.
Hi Benedikt,
You are correct! My apologies, the case will be updated shortly :)
In summary:
1) Seatbelt change in profitability is indeed -$45M
2) Total projected change in profitability is -$43M
Apologies for the confusion!
Similar Questions
Consulting
How to move into Private Equity from Consulting?
on Feb 28, 2025
Global
6
5.7k
6 Answers
5.7k Views
+3
Consulting
Has anyone tried any of the AI Interview Tools for MBB before?
on Feb 27, 2025
Global
9
9.1k
9 Answers
9.1k Views
+6
Expert case by
Top Answer by
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
To coach profile
Related Product
Prepped and Primed 3
Related Case
