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Fixed cost per tonne at two utilization levels
The prompt
A fictional cement plant has capacity of 5 million tonnes a year and fixed costs (staff, maintenance, insurance, overheads) of USD 75 million a year. What is the fixed cost per tonne at 80 percent and at 60 percent utilization?
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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