Cake or Break
Practice this intermediate profitability case interview question from Deloitte in the Consumer Goods sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
This is a structured profitability case that requires candidates to analyze margin differences between product types and recommend strategic diversification. The case tests both quantitative analysis (margin calculations) and strategic thinking (evaluating multiple growth options via a decision matrix).
Everything Bundt Cakes (“EBC”) is a bakery that specializes in bundt cakes of all sizes. They offer a variety of flavors, including a seasonal flavor.
Since 2020, EBC has noticed a decline in profits and would like your help to increase profits again.
Clarifying Information
- Product: There are three sizes of cakes: 5 inches, 10 inches, and 15 inches. The company is located in the US.
- Model: The primary form of revenue is individuals who physically go to the store or order online. There is a nominal amount of revenue through business orders.
- Objective: To find ways to increase profitability to help future growth.