Ice Cream Truck
Practice this intermediate profitability case interview question in the Retail sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
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
26 minutes
Difficulty
Medium
Source
Cornell
10
/ 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
- They sell two products (Single/Double Scoop ice cream cones)
- Single Scoop cones are priced at $4.00
- Double Scoop cones are priced at $7.00
- There are 25 customers per day, of whom 15 buy Single Scoop and 10 buy Double Scoop cones
- The stand is open 30 days a month for 4 months a year
- 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
- COGS is 50%
- The truck lease costs $1K to lease per month
- Insurance is $3K per year
- Tax is 20%