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Medium Profitability Operating Model Financial Analysis

Ice Cream Truck

#Food Service #Food & Beverage #Retail
ProHub Comment

This is a structured interviewer-led financial case that tests the candidate's ability to build financial models, conduct sensitivity analysis, and identify strategic levers for profitability improvement. The case progressively builds complexity from identifying revenue/cost drivers to calculating contribution margins, solving for break-even customer mix, and ultimately brainstorming strategic initiatives.

Estimated Time 15 minutes
Difficulty Medium
Source Cornell
50 / 100
Your client is an ice cream truck, operating out of a flea market in Houston, Texas. They’re facing a variety of issues currently and are looking for help in determining a sustainable operating model and go-forward strategy. They have a variety of questions they are hoping you are able to address.

Clarifying Information

  1. They sell two products (Single/Double Scoop ice cream cones)
  2. Single Scoop cones are priced at $4.00
  3. Double Scoop cones are priced at $7.00
  4. There are 25 customers per day, of whom 15 buy Single Scoop and 10 buy Double Scoop cones
  5. The stand is open 30 days a month for 4 months a year
  6. There are two line-level employees scooping ice cream at $8.00 per hour (for an 8-hour day, each working 4 hours) and there is a manager that is salaried at $10.00 per hour
  7. COGS is 50%
  8. The truck lease costs $1K to lease per month
  9. Insurance is $3K per year
  10. Tax is 20%