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Chester's product manager is considering lowering the price of the Cell product by $2.50 and wants to know what the impact will be on the

Chester's product manager is considering lowering the price of the Cell product by $2.50 and wants to know what the impact will be on the products contribution margin. Assuming no inventory carry costs, what will Cell's contribution margin be if the price is lowered?

Select: 1

29.99%
32.30%
34.00%

31.57%

2-

In three years, assuming the competitive environment remains unchanged, how many units of Cat will Chester be selling in the Nano market segment?
Select: 1
464
603
764

687

3-

ccording to information found on the production analysis page of the Inquirer, Digby sold 1127 units of Don in the current year. Assuming that Don maintains a constant market share, all the units of Don are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Don will not be able to meet future demand unless the company adds production capacity? Exclude any existing inventory.
Select: 1
1 year(s)
2 year(s)
4 year(s)

3 year(s)

4-

Which description best fits Digby in your industry? For clarity: - A differentiator competes through good designs, high awareness, and easy accessibility. - A cost leader competes on price by reducing costs and passing the savings to customers. - A broad player competes in all parts of the market. - A niche player competes in selected parts of the market. Which of these four statements best describes this competitor?
Select: 1
Digby is a broad cost leader
Digby is a niche differentiator
Digby is a broad differentiator

Digby is a niche cost leader

5-

Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Baldwin has obtained a productivity index of 109.4%. This means that Baldwin's labor costs would be increased by 9.4% if it did not have these productivity improvements. This is a competitive advantage that Baldwin can sustain or even widen further if its competitors have no HR initiatives. Now, refer to the Income Statement in Baldwin's Annual Report. How much did Baldwin's productivity improvements save it in direct labor costs (in thousands) last year?
Select: 1
$821
$3,138
$3,060

$29,761

6-

nvesting $2,000,000 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.xls Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,290,917. Assuming similar sales next year, the 1.7% increase in demand will provide $2,775,946 of additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will add $946,598 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 $2,000,000 TQM investment, rounded to the nearest month?
Select: 1
17 months
9 months
25 months

TQM investment will not have a significant financial impact

7-

Looking forward to next year, if Digbys current cash amount is $19,378 (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
Sells $7,000 (000) of long-term assets
Issues 100 (000) shares of common stock
Purchases assets at a cost of $15,000 (000)

Repurchases $10,000 (000) of stock

8-

Assuming Digbys current market share for its Drum product remains the same, how many units of Drum should Digby expect to sell in the primary segment for the upcoming year?
Select: 1
401 units
292 units
302 units

441 units

9-

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 Ate currently has an awareness level of 78% . While an important product for Andrews, Ates promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Ate loses one-third of its awareness each year, what will Ates awareness level be next year?
Select: 1
73%
57%
78%
52%

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