Match prior-year profit with new fixed costs
Company: Capital One
Role: Data Scientist
Category: Statistics & Math
Difficulty: easy
Interview Round: Technical Screen
Assume m = million. Year 1 (Regular-only): fixed costs $375m; sold 231m Regular at price $4, unit cost $1. Year 2 (launch Vegan): additional fixed costs: training $60m/year and supplier retainer $2.25m/month; maintain prices/costs from above and a sales mix Vegan:Regular = 2:3. How many total burgers (Regular + Vegan) must you sell in Year 2 to match Year 1 profit? Show formulas and the final number.
Quick Answer: This question evaluates cost–volume–profit analysis, unit economics, and algebraic modeling of fixed versus variable costs in a multi-product sales mix, testing quantitative financial reasoning in the Statistics & Math domain and emphasizing practical application rather than abstract theory.
