capsim comp xm answers 1. Looking forward to next year, if Digbys current cash amount is $20,201 (000) and cash flows from operations next period are unchanged from this period and Digby takes ONLY the following actions relating to cash flows from investing and financing activities: Issues $2,000 (000) of long-term debt Pays $4,000 (000) in dividends Retires $10,000 (000) in debt Which of the following activities will expose Digby to the most risk of needing an emergency loan? Select: 1 Issues 100 (000) shares of common stock Purchases assets at a cost of $15,000 (000) Repurchases $10,000 (000) of stock Sells $7,000 (000) of long-term assets 2. A productivity index of 110% means that a companys labor costs would have been 10% higher if it had not made production improvements. Now refer to the Income Statement in Baldwin's Annual Report. The direct labor costs for Baldwin were $32,486. These labor costs could have been $20,000 higher if investments in training that increased productivity had not been made. What was the productivity index for Baldwin that led to such savings? Select: 1 161.6% 44.6% 155.4% 38.4% 3. Investing $1,500,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 1.7% in this and in all future rounds. (Refer to the TQM Initiative worksheet in the CompXM Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,189,230. Assuming similar sales next year, the 1.7% increase in demand will provide $2,774,217 of additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will add $946,008 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels. How long will it take to achieve payback on the initial $1,500,000 TQM investment, rounded to the nearest month? Select: 1 6 months TQM investment will not have a significant financial impact 19 months 13 months 4. Assuming Digbys current market share for its Dug product remains the same, how many units of Dug should Digby expect to sell in the primary segment for the upcoming year? Select: 1 440 units 359 units 400 units 339 units 5. Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars typically results in a 26% increase in awareness, while the second million results in adding another 18% and the third million in a 5% increase. Andrewss product Awe currently has an awareness level of 80% . While an important product for Andrews, Awes promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Awe loses one-third of its awareness each year, what will Awes awareness level be next year? Select: 1 79% 58% 74% 53% 6. Crimp's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Crimp product manager do in order to improve upon the buying criteria, and thus potentially increase demand? Select: 1 Reposition Crimp to make it even smaller and higher performing Lower the selling price since it is the second most important buying criteria Increase the promotion budget to gain greater awareness Increase MTBF by 2000 7. In three years, assuming the competitive environment remains unchanged, how many units of Crimp will Chester be selling in the Nano market segment? Select: 1 764 687 464 603 8. Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales budget, the Cake product manager wishes to achieve a product contribution margin of 35%. Given their product currently is priced at $35.00, what would they need to limit the material and labor costs to? Select: 1 $24.50 $21.00 $23.00 $22.75