After successfully launching its new global roaming cell phone,UBIPhoneCorpis now in its second yearand has determined the following factsrelatingto the UBI Phone:The core component is manufactured in a foreign country, peripherals madein Canada and other custom features, are added before shipping towholesalecustomers.The company does not plan to operateretailoutlets, and proposes to sellitsproductson-line only, to end-product retailers

Projected On-LineSales100,000 units annuallyDevelopment

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 multiplesof100Required:1.

Determine the minimum quantity, andthe price at which the UBI Phoneshould be sold

2.What do you see as the potential problem/s? How do you suggest thecompany 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 onforeign manu- facturers have encountered in the recent past, outline theissues that UBI Phone Corp should expect, and suggest how theyshould be dealt with4.

IfUBIPhone Corp is preparing a budget for the upcoming period, howshould it use the above information for planning purpose