Compute current annual profit

Quick Overview

This question evaluates numerical proficiency in financial arithmetic, unit-aware quantitative reasoning, and per-customer business-metric computation within a loyalty program context.

Compute current annual profit

Company: Capital One

Role: Data Scientist

Category: Statistics & Math

Difficulty: easy

Interview Round: Technical Screen

A loyalty program has 2,000,000 customers. Revenue per customer: annual fee $50; plus 1% commission on average spending of $500 per month. Costs: fixed annual maintenance $250,000,000 and variable $5 per customer per year. Assuming 12 months in a year, compute (a) total annual revenue, (b) total annual cost, (c) total annual profit (revenue − cost), and (d) profit per customer. Show your work and units.

Quick Answer: This question evaluates numerical proficiency in financial arithmetic, unit-aware quantitative reasoning, and per-customer business-metric computation within a loyalty program context.

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Oct 13, 2025, 9:49 PM
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Loyalty Program Profitability Calculation

A loyalty program has 2,000,000 customers.

Revenue per customer (per year):

  • Annual membership fee: $50
  • Commission: 1% on average spending of $500 per month

Costs (per year):

  • Fixed maintenance cost: $250,000,000
  • Variable cost: $5 per customer

Assume 12 months in a year.

Compute and show your work with units:

(a) Total annual revenue

(b) Total annual cost

(c) Total annual profit (revenue − cost)

(d) Profit per customer

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