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A 20 percent price promotion in the UK
The prompt
An illustrative drinks brand in the UK sells 1,000 units a week to a grocer at a net price of GBP 10, with variable cost of GBP 6 per unit. The grocer proposes a promotion: the brand funds a price cut so its net price falls to GBP 8, and volume is expected to rise to 1,400 units. Does the brand gain, and what volume would it need to break even?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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