1.A regional distributor's profits have dropped even though sales are flat. How would you figure out why?
Why they ask
It's a classic case prompt. They're watching whether you build a structure before you start guessing.
How to answer
- Restate the problem and confirm what 'profits dropped' means: margin, total profit, or one product line
- Split it into revenue and costs, then break costs into product, freight, labor and overhead
- Ask for specific data, like cost per shipment by region or discounting by customer
- Form a hypothesis early and say what data would prove it wrong
- Close with a recommendation and the next thing you'd check

