S9E2: BCG Mock Case Interview: Opera de Paris
Strategy Simplified
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How Much Would My Profits Increase if I Doubled My High-End Revenue?
So I guess let's backtrack for a second. How much would my profits increase if I doubled my high-end revenue? Okay, I'll do it. So 5 minus 1.5, it is 30% of five. Yeah, okay, so I think the increased profit would be the entire the increased revenue that is 5 billion dollars because the costs are remaining the same. Whereas we are getting an additional 5 million dollar revenue. So I think the profitability was increasing by 5 million dollars. And so our initial profits were 15 million. Now it becomes 20 million. And this 20 is out of a revenue of 50. So it's 40% profit that we are.
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