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Keep stable profit margin

How do you calculate the percentage of customers (80%) who have to buy the warranty to keep a stable profit margin in the last question?

3 Answers
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Top answer
on Oct 30, 2023
#1 rated MBB & McKinsey Coach

Victoria, happy to help but I struggle to understand the question for now. Can you provide more details as to what you don't understand? 

Also, adding here a resource for common terms that show up in case interviews. Might help you and others as well who stumble upon this case:


Best,
Cristian

———————————————

Practicing for interviews? Check out my latest case based on a first-round MBB interview >>> SoyTechnologies  

on Nov 04, 2023
Sorry for the inconvenience. I'm referring to the question under analysis 2: Which percentage of customers has to buy the warranty in order to keep WyCar’s profit margin from model “300” stable? I'm confused about how could we get the 80% in the answer?
Ian
Coach
on Oct 30, 2023
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi Victoria,

Help us help you!

Which specific part of the case are you referring to? And where is your confusion? (Screenshots help!)

on Nov 04, 2023
Sorry for the inconvenience. I'm referring to the question under analysis 2: Which percentage of customers has to buy the warranty in order to keep WyCar’s profit margin from model “300” stable?
Ian
Coach
on Nov 05, 2023
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
I see Idea 1, 2, and 3 as sections
Alberto
Coach
on Oct 31, 2023
Ex-McKinsey Associate Partner | +15 years in consulting | +200 McKinsey 1st & 2nd round interviews

Hi Victoria,

We need more details on your question. Happy to keep talking un private, just send me a message.

Best,

Alberto

Check out my latest case based on a real MBB interview: Sierra Springs

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