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Extra resources for Ace Your Case IV: The Latest and Greatest (Wetfeet Insider Guides)
The Practice Range 31 CASE 5 The general manager of a popular ski resort has called on you to help her figure out why her resort has been experiencing declining profits over the past three years. How would you help her? Key questions to ask: The Practice Range Basic equations/numbers: How you’d track the numbers down: 32 CASE 6 Your client is a publisher of romance novels that sells to retail bookstores. The standard arrangement in the industry is that publishers must reimburse their customers at the end of the year for any unsold inventory.
The standard arrangement in the industry is that publishers must reimburse their customers at the end of the year for any unsold inventory. In this case, you are to assume that any inventory that is sent back to the publisher must be destroyed and has no resale value. One of your client’s customers has made a proposal: for a 10 percent discount on wholesale prices, they will no longer send back any books at the end of the year. Should the publisher do the deal? The following data exists: • In 2002, the client sold 10,000 books to the bookstore.
At other times of the day, the rate is likely to be slower. m. , two customers per minute are served, and at all other hours of the day, only one customer per minute is Nailing the Case served. 2 customers per minute are served on average throughout the course of the day. The candidate has handled the somewhat tricky rate question well, first by choosing manageable but believable numbers, and next by displaying his understanding of the concept of weighted averages, a simple but common formula that surfaces all the time in 57 the world of consulting.
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