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Integrated versus non-integrated box maker
The prompt
Two fictional box makers in the United States sell corrugated boxes at USD 1,100 per tonne of board used. BoxCo buys its containerboard on the market at USD 650 a tonne. MillBox owns a recycled mill whose cash cost of board is USD 480 a tonne. Both spend USD 300 a tonne to convert board into boxes (labour, starch glue, ink, energy) and USD 60 a tonne on freight to customers. What is each one's cash margin per tonne? All figures are illustrative.
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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