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Does an online test prep course in India pay back?
The prompt
An illustrative online test prep company in India sells a one-year course for INR 5,000. For each student it spends INR 1,000 on teachers and content, INR 500 on platform and support, and 2 percent of the price on payment fees. It spends INR 1,500 in marketing to win each student. 40 percent of students buy the next year's course at the same price and costs, with no new marketing. What is contribution per student, first-year profit after marketing, and the two-year LTV to CAC ratio?
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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