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Variance Investigation

Margins are down 3 points. Why? Investigate like a detective — ask the sales director, query the data, request comparisons — and find the root cause before you brief the CFO. Causal reasoning under ambiguity is the skill being tested.

You'll be briefed on a real-feeling finance situation. Ask people, query datasets, request comparisons. Each question costs you efficiency. When you think you have the answer, submit your conclusion.

Gross margin variance — MidIndustries Q3

MidIndustries is a mid-market industrial products company in LATAM with two main product lines (A, mature high-margin; B, fast-growing) and top-5 customers representing ~55% of revenue. Steel and aluminum are the main raw materials. You're commercial-finance analyst; the CFO wants an answer by Friday.

Consolidated gross margin dropped 3.0 points Q3 vs Q2 (from 32.4% to 29.4%). Revenue was up 4% in the same period. No one has flagged a specific cause yet.

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