McKinsey & Company Interview Question: A product sells for 2£. The C... |

Interview Question

Marketing and Sales - Associate Interview London, England

A product sells for 2£. The CEO asks you how much more he

  has to sell to have the same gains when he drops the price 10% and wants to up his sales by 5%.

Interview Answer

2 Answers


He has to up his sales by 16,7% in total for this product (90% ~ 1.80, 2 x 105 = 210, 210/1.80)

Interview Candidate on 2 Apr 2015

No it should be 15%. Rev=price x quantity. Taking the log and difference you can wrote dlogR=dlog p-dlogq. If you want 5% more rev but price goes down 10%, then sakes has to go up by 15%.

Anonymous on 13 May 2017

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