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

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

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