1. Assume a companys Income Statement for Year 9 is as follows:

Income Statement Data Year 9 (in 000s)

Total Revenues $ 610,000

Cost of Goods Sold 370,000

Delivery Costs 40,000

Marketing Costs 48,000

Administrative Expenses 10,000

Operating Profit (Loss) 142,000

Other Income (Expense) -2,000

Interest Income (Expense) -8,500

Pre-tax Profit (Loss) 131,500

Income Taxes 39,450

Net Profit (Loss) $ 92,050

Based on the above income statement data, the company's interest coverage ratio and operating profit margin are 19.29 and 15.1%.

15.47 and 23.3%.

17.22 and 24.6%.

10.83 and 15.1%.

16.71 and 23.3%.

2. One of the benefits of spending sizable sums of money for social responsibility initiatives and good corporate citizenship over a multi-year period is

the positive impact that such spending has on the company's image rating/brand reputation, which in turn can positively impact sales of the the company's AC cameras and UAV drones.

the positive impact that such a strategy can have on the company's credit rating if the company spends a meaningful amount on socially responsible activities over a multi-year period.

the enhanced profitability that results when a company opts to spend money on socially responsible activities.

the added boost that such a strategy gives to the company's global sales revenues.

the added boost that such a strategy gives to the company's stock price.

3.

Given the following data from a Comparative Competitive Efforts page in the CIR:

UAV DRONE SEGMENT		Your Company	Industry Average	Your Company vs. Ind. Avg.
Price (average direct sale $ per unit)		$1,190	$1,327	-10.3%
Discount to Online Retailers		8%	11.9%	-32.8%
P/Q Rating (1 to 10 stars)		4.4	4.4	same
Brand Reputation		82	75	+9.3%
Number of Models		2	2.926	-31.6%
Online Retailers		26	26	same
Website Displays ($000s)		2,500	1,657	+50.9%
Search Engine Advertising ($000s)		2,500	2,104	+18.9%
Retailer Recruitment ($ per unit)		246.48	128.07	+92.5%
Warranty Period (days)		90	94	-4.3%
Drone Unit Demand	Direct	54.4	37.9	+43.5%
(000s)	3rd Party Retailers	7.1	11.1	-36.0%
Total Demand		61.5	49.0	+25.5%
Gained/Lost (due to stockouts-000s)		+1.9	-0.2
UAV Drone Units Sold (000s)		63.4	48.8	+29.9%
Market Share		18.5%	14.3%	+4.2 pts

Based on the above data for your company, which of the following statements is false?

options:

Your companys drone sales volume and market share were positively impacted by your companys P/Q rating and number of online retailers.

Your companys sales volume and market share were negatively impacted by your companys 2-model product line and percentage discount to 3rd party online retailers.

Your companys expenditures for retailer recruitment and website displays were your companys two biggest percentage competitive advantages.

Your companys price-based competitive advantage was a significant contributor to your companys sales volume and market share.

Your company's percentage competitive advantages and disadvantages on the 10 competitive factors affecting drone sales and market share resulted in a net overall competitive advantage of a size that produced an above-average 18.5% market share for your company that was 4.2 percentage points above the industry average.