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    Consulere - Decoding The Case

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    Shyam C V

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    Consulere - Decoding The Case

    Uploaded by

    Shyam C V
    7 views1 page

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    Consulere - Decoding the Case

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    7 views1 page

    Consulere - Decoding The Case

    Uploaded by

    Shyam C V

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Consulere – IIM Sirmaur

    Consulting | Decoding the Case

    Majestic Cinemas is a popular movie theatre in the heart of Milan, Italy. It has
    been the first choice of locals for a wholesome cinematic experience and its
    patrons have been sticking with it for last three generations. Although immensely
    popular with the locals, over the last 12 months the profits of the cinema have
    been going down.

    The owner has been worried about the declining profits and is looking for a way
    to figure out the ways to improve profitability and keep the theatre running for its
    patrons.

    Following is the Profit and Loss statement for the theatre for current and last year
    to help in the analysis:
    Last Year This Year
    Profit € 676,000 € 502,000

    Revenues € 1,500,000 € 1,950,000


    • No of Trips 100,000 150,000
    • € Spent/Trip € 15 € 13
    € Spent per ticket € 10 € 10
    € Spent on Food €5 €3

    Cost
    • Fixed Costs € 824,000 € 1,448,000
    Rent € 120,000 € 240,000
    Staff € 264,000 € 528,000
    Movie Rights € 240,000 € 480,000

    • Variable Costs € 200,000 € 200,000


    Food € 200,000 € 200,000

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