Interview Question
Data Analyst Interview

Capital OneCase interview: basic business problem (if product X costs Capital One $4.00 per unit, with a $800 sunk cost, and we charge X amount of dollars along with a $10 annual fee, how many do we need to sell to break even, etc). Followed by a longer discussion of more complex problems that the situation might entail.
Interview Answers
8 Answers
Actually, to correct the above response, if the selling price for 1 product is $794 (to cover the cost price of the product itself ($4) ), only 1 quantity needs to be sold. ($794 + $10) = ($800 + $4).
Anonymous on
let's say we should sell y+1 units to break even 800 + 4.y = y*x + 10*y 800 = y(x + 10  4) 800/(x+6) = y so we should sell (800/(x+6)) + 1 units
Elif A. on
How is it possible to answer this without knowing the selling price per product? # of quantities to sell in order to breakeven depends on how much the selling price per product is? Since the selling price says X, you can sell it for $790 and breakeven by just selling 1 product ($790 per product + $10 annual fee (assuming it's per product)). But I may be misunderstanding the information provided. Any feedback?
Anonymous on
Erin  it probably shouldn't be. The Revenue side should be (unit price + 10) * number of units sold. Dapo has assumed that unit price and number of units sold is the same since the letter X is used to describe both variables. That might be correct, but it would be an odd quirk of the question  I'd bet that you can ask what the unit price is.
Andy on
Why is x^2?
Erin on
Mostly algebra, basic economics, and common sense.
Anonymous on
very good if all 3 of you are interviewing, I can get the position. It doesn't say the annual fee is per product, so you have to assume or ask if it is the case, and if not the # of customer and potential customers estimation. And that x^2 Dapo, did you pass the online test?
Anonymous on
total cost= 4x + 800 total income= x^2 + 10x to break even: 4x + 800 = x^2 + 10x solving for x by evaluating the quadratic equation above, x ~= 25.45 To break even, 26 units must be sold
Dapo on
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