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S2E9: Virtual M&A Case Walkthrough, McKinsey-style

Strategy Simplified

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How Do You Calculate the Revenue Per Year of a Margaritaville?

Average cost of a menu item is $18 and the average cost of a drink for those who order one is $12. The two main items are signature Magrita glasses and t-shirts in the merchandise store. The average price for those who buy those is $20. Can you calculate the revenue per year of one store for Margaritaville? Mm-hmm. Great. Well, right now I've got revenues on a per-store basis and I want to estimate it as we're sitting here about to order our drinks and our food.

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