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One handbag: own store or department store?
The prompt
An illustrative luxury handbag sells for EUR 2,000 (before sales tax) and costs EUR 500 to make. In the brand's own store, store costs (rent, staff, energy) are 30 percent of sales. Through wholesale, the brand sells to a department store at 45 percent of the retail price and spends 5 percent of its wholesale price on selling costs. What does the brand earn per bag in each channel?
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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