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Calculate first-year profit margin

Last updated: Mar 29, 2026

Quick Overview

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.

  • easy
  • Capital One
  • Statistics & Math
  • Data Scientist

Calculate first-year profit margin

Company: Capital One

Role: Data Scientist

Category: Statistics & Math

Difficulty: easy

Interview Round: Technical Screen

Assume m = million. Using Year 1 figures: fixed costs $375m; sold 231m Regular at price $4, unit cost $1. Compute Year 1 profit margin defined as Profit/Revenue (in percent) to two decimals, showing each step.

Quick Answer: 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
3
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.

Solution

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