After successfully launching its new global roaming cell phone,UBI PhoneCorpis now in its second yearand has determined the following facts relatingto the UBI Phone:

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

The company does not plan to operateretailoutlets, and proposes to sell itsproductson-line only, to end-product retailers

Projected On-LineSales100,000 units annually

Development costs todate$2,250,000

Purchase price [plus customization]Can$90.00per unit

Required rate of return on investments10%

Cost of operatingthe website$250,000 per year

On-LineMarketing$150,000 per year

Other handlingcosts$2.30 per unit sold

Personnel costs$250,000 per year

Occupancy/Systemscosts$500,000 per year

Orders must be in multiplesof100

Required:

1. Determine the minimum quantity, andthe 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. IfUBIPhone Corp is preparing a budget for the upcoming period, how should it use the above information for planning purposes?