AK Steel is an integrated manufacturer of high-quality steel and steel products in capital-intensive steel mills. AK Steel produces flat-rolled carbon, stainless and electrical steel products, and carbon and stainless tubular steel products for automotive, appliance, construction, and manufacturing markets. Nucor manufactures more commodity-level steel and steel products at the lower end of the market in less capital-intensive mini-mills. The following selected hypothetical data describe sales and cost of products sold for both firms for Years 3 and 4.