Interviewer view · keep this screen to yourself

Does an online test prep course in India pay back?

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

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?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

LTV to CAC = contribution over two years / cost to win the student
- Contribution per year = price minus teacher, platform, and payment costs
- Two-year contribution = year 1 + renewal rate x year 2

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Contribution per student
What a strong candidate does: INR 5,000 minus 1,000, 500, and 100 in payment fees.
Contribution per student per year (INR): 5,000 - 1,000 - 500 - 5,000 × 0.02 = 3,400
Step 2: First-year profit after marketing
What a strong candidate does: Subtract the INR 1,500 CAC.
First-year profit per student (INR): 3,400 - 1,500 = 1,900
Step 3: Two-year contribution
What a strong candidate does: Year 1 plus 40 percent of year 2.
Two-year contribution (INR): 3,400 + 0.4 × 3,400 = 4,760
Step 4: LTV to CAC
What a strong candidate does: Divide by INR 1,500.
LTV to CAC ratio: 4,760 ÷ 1,500 = 3.17

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

Contribution is INR 3,400 per student a year, so the course pays back in the first year with INR 1,900 of profit after INR 1,500 of marketing. Because 40 percent of students buy a second year, two-year contribution reaches INR 4,760, an LTV to CAC ratio of about 3.2. The risk is marketing cost: in crowded markets CAC can rise above the first-year contribution, which is part of what went wrong at several heavily funded edtech firms. As a next step, track CAC and the renewal rate by channel each month.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.