Interviewer view · keep this screen to yourself

Who earns what on one unit case of soft drinks

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

A fictional bottler sells one unit case to shops for USD 5.00 (after discounts). Per case, it pays the brand owner USD 1.10 for concentrate, spends USD 0.45 on sweetener, USD 1.10 on packaging, USD 0.40 on making and filling, USD 1.05 on distribution and selling, and USD 0.30 on overheads. The brand owner's cost of making the concentrate is USD 0.25 a case, plus USD 0.35 of marketing and USD 0.10 of overheads. What does each earn per case, and at what margin? All figures are illustrative.

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Profit per case for each company = what it is paid minus its own costsThis comes from the goal: split the money for one case between the two businesses.
- Bottler: price to shops minus concentrate, sweetener, packaging, production, distribution, overheads
- Brand owner: concentrate price minus concentrate cost, marketing, overheads

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Bottler profit
What a strong candidate does: 5.00 minus all six costs.
Bottler operating profit (USD per case): 5 - (1.1 + 0.45 + 1.1 + 0.4 + 1.05 + 0.3) = 0.6
Step 2: Bottler margin
What a strong candidate does: 0.60 divided by 5.00.
Bottler operating margin (fraction): 0.6 ÷ 5 = 0.12
Step 3: Brand owner profit
What a strong candidate does: 1.10 minus 0.25, 0.35 and 0.10.
Brand owner operating profit (USD per case): 1.1 - (0.25 + 0.35 + 0.1) = 0.4
Step 4: Brand owner margin
What a strong candidate does: 0.40 divided by 1.10.
Brand owner operating margin (fraction): 0.4 ÷ 1.1 = 0.3636

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

The brand owner earns about 36 percent on its USD 1.10, while the bottler earns about 12 percent on USD 5.00, so the two should be judged by different measures. First, the bottler earns more dollars per case (USD 0.60 against 0.40) but needs factories, trucks and coolers to do it. Second, this means the brand owner's return on the money it puts in is far higher, which is why some brand owners sell their bottling businesses to partners. The risk in the split is that a price war in shops hits the bottler's thin margin first. As a next step, compare each company's profit with the assets it needs, not only with its revenue.

Risks a strong answer names: Concentrate prices are often set as a share of the bottler's price, so the two share the gains and losses from price changes; Packaging costs follow aluminium, PET resin and glass prices.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.