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How much of the profit comes from the installed base?
The prompt
Ironfield Machines (a fictional company) sells 1,000 mining trucks a year at USD 250,000 each, with a 10 percent operating margin. It has 10,000 of its trucks working at customers. Each truck needs about USD 20,000 a year of parts and service, and Ironfield wins 60 percent of that spending at a 35 percent margin. How much profit comes from new trucks and from the aftermarket?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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