Paper Packaging White Paint

Question

Hey Everyone!

I would like to clarify the following point:

The solution for the Question Nº4, says that “Currently for paper packaging, the white paint contributes 80 EUR/ton”.
I believe the above sentence was based on the “Table 1”. However, we have the cost of Paint (white + other paints) per ton of Packaging Paper = 80.
How can we assume that 100% of this cost is related exclusively to white paint? Why do we eliminate the “other paints” from the equation?
From my understanding the White paint should have an weight of 41% on the total paint cost (80).

Thank you very much in advance.

Best regards,
João Paulo Figueira

Answer 1

Hi João,

That's a fair concern.

The same way you did it here, I would also bring it up with the interviewer.

The interview is meant to replicate a conversation with a client at the end of the day, so the more conversation you're making it and the more you show that you're thinking through the case, the better.

Best,
Cristian

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Answer 2

Hi Joao,

This is a great catch! this is a great example of a “risky assumption” that you should always clarify with the interviewer.

It truly depends on the interviewer's answer here: As long as you check with them, you are safe!

Answer 3

Hey Lisa, that's not the price per ton. To achieve a reduction of 33%, the price per ton for white paint needs to be... (read entire answer)

Hey Lisa, that's not the price per ton. To achieve a reduction of 33%, the price per ton for white paint needs to be lowered to €422.50 (see the 3rd bullet point in the solution... (read entire answer)