After successfully launching its new global roaming cell phone, UBI Phone

Corp is now in its second year and has determined the following facts relating

to the UBI Phone:

The core component is manufactured in a foreign country, peripherals made . in Canada and other custom features, are added before shipping to wholesale

customers .

The company does not plan to operate retail outlets, and proposes to sell its

products on-line only, to end-product sellers

Projected On-Line Sales 100,000 units annually

Development costs to date $2,250,000

Purchase price [plus customization] Can$90.00 per unit

Required rate of return on investments 10%

Cost of operating the web site $250,000 per year

On-Line Marketing $150,000 per year

Other handling costs $2.30 per unit

Personnel costs $250,000 per year

Occupancy costs $500,000 per year

Orders must be in multiples of 100

Required:

1. Determine the minimum quantity, and the price at which the UBI Phone should be sold

2. What do you see as the potential problem/s? How do you suggest the company deal with the problems you see? Give reasons.

3. Using the Balanced Scorecard [BSC], and the Cost of Quality Schedule, and given the problems that North American producers relying on foreign manu- facturers have encountered in the recent past, outline the issues that UBI Phone Corp should expect, and suggest how they should be dealt with

4. If UBIPhone Corp is preparing a budget for the upcoming period, how should it use the above information for planning purposes?