Back to Valuation questions
💰 Valuation
Medium
Would you rather increase price by $1/unit or increase the volume of units sold to value a business?
Answer
A $1 price increase, if achievable. Reason: price increases flow almost entirely to the bottom line (no incremental variable cost), while volume increases come with proportional variable costs and often require incremental SG&A or CapEx.
Continue reading the full answer
Plus the detailed banker explanation of what interviewers are really testing.
operating leveragepricing