Match Year-2 profit to Year-1

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Quick Overview

This question evaluates unit economics, basic profit modeling, and algebraic manipulation to relate price, variable cost, fixed costs, and sales volume.

Match Year-2 profit to Year-1

Company: Capital One

Role: Data Scientist

Category: Statistics & Math

Difficulty: easy

Interview Round: Technical Screen

Year 1: you sold only classic burgers at price $4, unit cost $1, volume = 231m units. Year-1 fixed costs are negligible for this calculation. Year 2: you keep the same classic unit economics but incur new fixed costs: base fixed cost = $375m/year plus vegan program training = $60m/year and supplier retainer = $2.25m/month. Assuming you still sell only classic burgers in Year 2, how many total units must you sell in Year 2 to match Year-1 absolute profit? Show the equation and solution.

Overview: This question evaluates unit economics, basic profit modeling, and algebraic manipulation to relate price, variable cost, fixed costs, and sales volume.

Read the full Capital One Data Scientist interview experience this question came from

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Oct 13, 2025
easyData ScientistTechnical ScreenStatistics & Math
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Target Profit Volume Across Two Years

Context

You sell only classic burgers. Year 1 has negligible fixed costs; Year 2 introduces new fixed costs. The unit economics (price and variable cost per unit) stay the same in Year 2. Find how many units you must sell in Year 2 to match Year 1's total (absolute) profit.

Given

  • Year 1:
    • Price per unit = $4
    • Variable cost per unit = $1
    • Volume = 231 million units
    • Fixed costs ≈ 0
  • Year 2:
    • Same price and unit cost as Year 1
    • Fixed costs:
      • Base fixed cost = $375 million per year
      • Vegan program training = $60 million per year
      • Supplier retainer = $2.25 million per month

Task

Assuming you still sell only classic burgers in Year 2, how many total units must you sell in Year 2 to match Year 1's absolute profit? Show the equation and the solution.

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