Total Commissions per Product of RetailBankingCo
Total comm. per product RetailBankingCo = $4 + $80 × 5% × 3 = $16 < $80
If it is per product why is it multiplied by 3
And why is it multiplied by 3, not 4?
Get Active in Our Amazing Community of Over 453,000 Peers!
Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Case Partners to connect and practice with!
Total Commissions per Product of RetailBankingCo
Overview of answers
Upvotes
Best answer
Hi there,
Basically, you need to multiply by the average lifetime of a product, which is 3 years, not 4.
Best,
Cristian
Was this answer helpful?
Hi there,
Thank you very much for this question. I would be happy to share the solution to it:
- In section “Background”, it is stated "The average lifetime of these four products is three years.”
- As such, given that the trailing commission is by definition paid on a yearly basis, one needs to multiply the trailing commission by 3.
If you would like a more detailed discussion on how to best prepare for your upcoming interviews, please don't hesitate to contact me directly.
Best,
Hagen
(edited)
Was this answer helpful?
Hi there,
Great question! Hagen has already answered, but make sure to read all sections of a case to better understand. Additionally, these are the types of “tricks” that are common in cases so the interviewer can check that you are thinking rationally about things (even if you have not “learned” that exact thing)
Was this answer helpful?
Sign up for free to read all answers.
Sign up for free to read all answers.
