# Mckinsey Problem Solving Test Pst 2006

In our experience successful candidates really go in-depth to understand their mistakes when preparing for the Mc Kinsey problem solving test. In this case productivity is low under normal conditions, and we are trying to think about what processes could be changed to increase it.In addition, they also study the answers to questions which they answered CORRECTLY and try to look for ways to answer the question FASTER. However, there is nothing the company can do about staff falling sick, so the proposed measure would not be very relevant.Thanks for the Mc Kinsey PST Training Programme, I have already started to improve. I’m wondering if this is the type of question I should skip.

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Answer C states that there 'are differing levels in the average volume of trash per customer in the different cities.' The answer indicates that Answer C does NOT help explain the differences in net profit margins.

Whilst I do agree that the fees are set per month, in the introduction it says that 'The monthly fee depends on the volume of trash to be handled.' That gives me an indication that although a monthly fee, the fee is very much dependent on the volume of trash (i.e., for instance, the price is set every beginning of month, depending how much trash was disposed of last month).

The answer key does not explain in details the formula for this calculation. Then you can pick the answer that gives a number of customers greater or equal than your result.

Let's start with the formula for profit: Profit = revenue - cost = (number of customers x fee per customer) - (weekly fixed costs weekly variable costs) The fee per customer is \$100, the weekly fixed costs are equal to five times \$2,000 (the daily fixed costs multiplied by the number of times the crew operates per week), which is \$10,000 and the weekly variable cost is the cost of disposing of the garbage at the landfill.

Indeed, if the differences in volume are already reflected in the revenues and cost, then they cannot explain any differences in profit margin in the cities.

Suppose that there is 10% more trash to be collected in Milwaukee than in San Diego, then the cost of collecting the extra garbage will be 10% higher in Milwaukee than in San Diego.

You should take the word "employee cost" in the question as meaning the same as "employee cost" in the description, i.e. What you need to keep in mind is that if the question would like you to do additional calculations, then it would ask for it specifically, for example by asking for I have doubt about Question 22 from Mckinsey official PST practice test C.