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Brenholt: price up, volume down, fixed costs up
The prompt
Brenholt, a bakery chain in Germany, saw profit fall from EUR 4 million to EUR 2.85 million. Last year it sold 10 million loaves at EUR 3.00; this year it sold 9.5 million at EUR 3.10. Variable cost is EUR 1.80 per loaf in both years. Fixed costs rose from EUR 8 million to EUR 9.5 million. What drove the fall?
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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