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25 months
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12Bn Rev Per year 9BN cost per year Customer Loss per year = 1million *12 months = 12 million customers Revenue per customer per year = 36 + 7*12 = $120 Each year, company looses 1.44BN. = (12 million *120) To make a loss, company must loose 3BN 3BN/1.44BN = 2.083 years 2.083 years = 25 months. Moins
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25 months doesn't sound right... Revenue: $12 billion Costs: $9 billion Profit: $3 billion Customer lost/month = 1 million Revenue lost/month = (36/12 + 7) = $10 * 1 million = $10 million Break even = $3 billion / $10 million = 300 months 300 months / 12 = 25 years The only way I can see 25 months is if we assumed Ad Revenue is Annual and CANNOT be broken down to month average/customer. In that case Annual Revenue/Customer = 36 + (7 *12) = $120/customer Total lost revenue/month = 120 * 1 million = 120 million Breakeven = 3 billion / 120 million = 25 months Moins
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I think there is enough information. We know from the previous question, their programming rights and contest cost 9Bn. Maybe they'd increase with the Hulu subscription. But assuming they stay the same, the business can last 30 months. Hulu has 50 M subscribers, adoption rate is 20% So, 10 million customers will sign up for this service Subscription fee is 2 per customer per month 2X12= 24 per year 24X10M= 240M in subscription fees per year Ad revenue is 3 per customer per month 3X12=36 per year 36X10M= 360M in ad revenue per year 240M+360M=600M in total revenue from Hulu partnership On a per month basis revenue from Hulu is 50M 750M in costs per month We know that once they reach 75M customers, they stop making a profit, and only break even. This is in month 25 Considering the monthly costs of 750M and the 50M in Hulu subscription revenue, we knows that once their revenue is 700M, they’ll no longer be making a profit. When their monthly revenue is 700M, they have 70M customers You can also set up an equation to determine the period when they’ll no longer net a profit X+50M=750M X=700M They’ll have 70M customers in month 30th So, the business can last until month 30th Moins
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How do you calculate that they will have 70m customers in month 30
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Doesn't seem to be enough data here.... Time period? Costs?
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Hi , How much time they took from 1st round of interview to Final offer letter ?? I have also given interview for the same profile(Workday) and i m selected for 2nd round Ca you please share your experience with Senior manager?? is it Technical or Hr type ?? Regards, Sumit Moins
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Hi , How much time they took from 1st round of interview to Final offer letter ?? I have also given interview for the same profile(Workday) and i m selected for 2nd round Ca you please share your experience with Senior manager?? is it Technical or Hr type ?? Regards, Sushil Moins
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Hi , How much time they took from 1st round of interview to Final offer letter ?? I have also given interview for the same profile(Workday) and i m selected for 2nd round Ca you please share your experience with Senior manager?? is it Technical or Hr type ?? Regards, Sumit Moins
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Correct on the first question, start getting wrong on the second the third. For 2nd question, you already know the lottery has to pay $0.8 on average to every buyer, so after adding additional 4 million to the prize( this part stays fixed as no matter how many tickets sold), the collective should be a function of number of tickets sold: 0.8n+4 million. In this case, 2 million tickets sold, that's 0.8*2 million + 4 million=5.6 million in total collective value. For a single ticket is 5.6 million divided by 2 million tickets sold, is $2.8. From that we can go to the third question. Both cost(prize to pay to winners) and revenue are functions of tickets sold, where cost = 0.8n+4million, and revenue = 2n. The breakeven point is cost equals to revenue, when n equals to 3.33 million. Currently 2 million tickets sold, so we need to sell 1.33 million more tickets to cover the potential cost. To see if it's viable to sell 1,33 million more tickets is an open-ended question, just name several factors to consider: economy cycle, local income&spending power, advertisement, retail panel and like. Moins
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I think a lot of the challenges have to do with the wording of the question. To me, if we assume they have already broken even on previous lottery costs, we are a point where profit is currently zero. My interpretation of the question is how many additional tickets do we need to sell to cover the 4 million, which is essentially a fixed cost seeing as regardless of how many winners there are, the cost to the lottery remains at 4 million. With previous lotteries costs paid for, we don't have to consider them. However, all NEW tickets sold will still cost the lottery business 80 cents on average, making this a variable cost. We know revenue per ticket is $2. Each ticket provides a profit of $1.20 (2 - .80). Thus we setup the breakeven equation with x being the number of tickets needed to reach breakeven. 1.20x - 4,000,000 = 0 1.20x = 4,000,000 x = 4,000,000/12 x = 3,333,334 tickets (rounded up 1 since we can't sell partial tickets So we would need to sell an additional 3.33 million tickets to breakeven on the 4M in new prizes. Moins
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This is how I solved the questions. The answers are all correct. 2. 1st : 1 in 10 million, the prize is 1 million 1/10 mill X 1 mill=0.1 2nd :1 in 1000, the prize is 200 1/1000(200)=0.2 3rd :1 in 10, the prize is 5 dollars 1/10(5)=0.5 0.1+0.2+0.5 =0.8 On average consumers should expect to win 80 cents 5. 2nd prize 2 million buyers 1/1000(2 million buyers)= 2000 So, there will be 2000 winners. Divide 2 mill by number of winners to determine how much each of them win 2,000,000/2000 The value of the 2 million jackpot is 1000 3rd prize 2 million buyers 1/10(2 million buyers) There will be 200,000 winners. Divide 2 mill by the number of winners to determine how much each of them win 2,000,000/200,000 The value of the 2 million jackpot is 10 Add in the other prizes, to get the total value 1st 1 million 2nd 1000+200 =1200 3rd 10+5 =15 1 mill+1200+15 =1,001,215 The collective value of the ticket is 1,001,215 6. 4 mill was spent on the lottery Tickets cost 2 dollars 2X=4 mill __ __ 2 2 X=2 mill So, 2 mill additional tickets need to be sold Moins
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decoupling and investor ownership
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CAISO: California Independent System Operator/ how they make money: decoupling and investor ownership Moins
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Yeah it sounds like really simple questions. The problem was this was after 5 hours of interviewing/talking and at that point I had reached my mental exhaustion limit. I was able to answer it but it wasn't exactly the most well put answer. Moins
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i don't understand. what is the base of 15% to pay accounts off? how much off? what offer is it? what's the motivation? what does 10% pay in full and 10% pay in offer mean? why are we stealing our own customers? Moins
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Assume that the base is 100. Initial scenario: a) 15% pay off @ 2000 (USD) => 15%*100*2000 =>30000 New scenario a) 10% pay off @ 2000 (USD), and 10% pay off @ 60% => 10%*100*2000 + 60%*10%*100*2000 =>32000 The firm stands to make more money with the revised scenario. I am not sure what the cannibalization has to do here, but the firm needs to get a rate of 50% paying under the scheme to be breaking even. (Assuming that the original 10% will stay). Moins
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Assume we have 100 people as base cannibalization rate= Unit Loss of old product / unit sales of new product In our case = (15%100-10%100)/10%*100 = 5/10=50% Break-even Cannibalization Rate Profit from sales of new product = profit stolen from old (In our case, we do not have a cost, we only have revenue, let's assume revenue is our profit) Assume we still X number of ppl from old plan 10%*60%*2000*100=10%*X*2000 12000=200*X X=6 So when we steal 6 people from old plan, we will break even. Thus the maximum cannibalization rate will be 6/10=60% Moins
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Above answer is correct: need to charge $38.75 per ride.
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I believe it was $56.25. There were 120 drivers needed
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1,600 surge rides/4 hours/5 rides per hour = 80 drivers needed 20,000 = ($30*800)+($X*1,600)+(-$700*80)+(-10,000) Solve for $X price. I got $38.75 but I didn't get invited to the next round so i really don't know... Moins
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2000 is correct for 2nd part
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Q1: Revenue = $500/unit x 2000 units/mo x 24 mos = $24M Cost = $6.6M + $2.4M/year x2 years + $250 x 2000 units/mo x 24 mos = $23.6M Profit = $0.6M Q2: Question is how many additional units do I have to produce to make the same profit as I did previously in just 1 year but with the added cost of repairing 25% of my units at $200 per unit. Let's say I have to produce X units per month now. New Revenue = $500/unit x X units/mo x 12 mos = 6000X New Cost = $6.6M x $2.4M/yr x 1year + [250x12xX - 200x12xXx25%] = $9M + 3600X Setting $0.6M = New Rev - New Cost = 6000X - $9M+3600X Solving for X = 4,000 units monthly So I have to make an additional 2,000 units per month to have the same profit in the first year. Moins
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Total Rev = $250 ( $500 - $250) x (2000 x 12months) = $6 M/year Total Cost = Fixed + Var = $9M/year Profit = T.Rev - T. Cost = $-3.0M/year (loss) Qns 2) Variable Cost per unit 2,400,000 = 24,000 units x Z( which is VC per unit) so Z = $100 per unit Therefore Break even units = $6.6M / ($500(Selling Price) - $100(V.Cost)) =16,500 units Added FC from repairs is $1.2M ( 25% of 24,000 units x $200 per unit) This is Sunk cost and additional So New Breakeven = $6.6M + $1.2M/(500 - 100) which is the Contributions Margin per unit 19,500 units for BE with additional costs Additional Units is 3000 units (19,500 - 16,500) Moins
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Hi, do you mind post the answer as well? Appreciate it.
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What are we breaking even with ? The 12.5 cash investment ? How much cash flow does the new product generate ? Moins
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breakeven: you paid 12.5 today, and 137.5 in future, and no interest rate, so you have to make 150 to break-even. pricing: have to have cost and volume, and historical data of price elasticity. If not, use breakeven analysis. assuming total market volume remains as price drops, and that this price elasticity takes into consideration of all factors including dynamics of market share rebalance and volume change to this company only, set price elasticity to be x, cost to be c, total volume to be V, we have (8-c)*0.6V = (7-c)*0.6V*(1-x/8), x=(c-7)/8, if absolute value of price volatility is larger than this, we decrease price. Moins