Junior Intelligence Analyst Interview Questions

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Catalogue A costs 90 cents to make per catalog. It has 80 pages. The average order value of a customer who would buy off this catalog is $335 with a profit margin of 30%. The conversion rate is 5%. Catalog B costs $1.5 to make per catalog. It has 160 pages. The average order value of a customer who would buy off this catalog is $295 with a profit margin of 30%. What is the minimum conversion rate we need for Catalogue B to achieve the same overall profits as Catalogue A? After solving for the conversion rate, let’s assume the company decided to go with Catalogue B. If there is a fixed cost of $100,000 for making the catalogs (irrespective of how many catalogs we make), what is the number of people we need to target in order to get a profit of $250,000? (use data for catalog B from the previous question)
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Business Intelligence Analyst

Interviewed at Wayfair

3.1
Oct 30, 2018

Catalogue A costs 90 cents to make per catalog. It has 80 pages. The average order value of a customer who would buy off this catalog is $335 with a profit margin of 30%. The conversion rate is 5%. Catalog B costs $1.5 to make per catalog. It has 160 pages. The average order value of a customer who would buy off this catalog is $295 with a profit margin of 30%. What is the minimum conversion rate we need for Catalogue B to achieve the same overall profits as Catalogue A? After solving for the conversion rate, let’s assume the company decided to go with Catalogue B. If there is a fixed cost of $100,000 for making the catalogs (irrespective of how many catalogs we make), what is the number of people we need to target in order to get a profit of $250,000? (use data for catalog B from the previous question)

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