Calculate first-year profit margin

This question evaluates a data scientist's quantitative reasoning about unit economics and financial metrics, including understanding fixed versus variable costs and computing profit margin as a percentage.

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Capital One

Oct 13, 2025, 9:49 PM

Data Scientist

Technical Screen

Statistics & Math

0

Profit Margin Calculation (Year 1)

Context: A single product is sold in Year 1. m denotes million.

Given:

Fixed costs: $375m
Units sold (Regular): 231m
Price per unit: $4
Unit variable cost: $1

Task:

Compute the Year 1 profit margin, defined as Profit / Revenue, expressed as a percentage to two decimals. Show each step.

Calculate first-year profit margin

Profit Margin Calculation (Year 1)

Solution

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Calculate first-year profit margin

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Profit Margin Calculation (Year 1)

Solution

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