Operating leverage: the same sales growth, very different profit growth
Prints the prompt and every part you have revealed so far.
The prompt
Two companies in Singapore each have revenue of SGD 1 million (1,000 thousand) and profit of SGD 100 thousand. All figures below are in SGD thousands. Company A has variable costs of 200 and fixed costs of 700. Company B has variable costs of 700 and fixed costs of 200. Sales rise 10 percent at both. What happens to profit?
Practice with a partner
1. Send the interviewer link to a friend. They read the case aloud and hold the answers.
2. You open the candidate view: you see only the prompt, a timer and a notes box.
3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.
Interviewer view
For the person running the case
Candidate view
For the person answering the case
Your turn first
Clarifying questions, with the interviewer's answers
My notes on this case
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