Digby's product manager is considering lowering the price of the Dome product by $2.50 and wants to know what the impact will be on the product?s contribution margin. Assuming no inventory carry costs, what will Dome's contribution margin be if the price is lowered? Select: 1 30.00% 31.58% 34.00% 32.30% According to information found on the production analysis page of the Inquirer, Baldwin sold 1129 units of Bam in the current year. Assuming that Bam maintains a constant market share, all the units of Bam are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Bam will not be able to meet future demand unless the company adds production capacity? Exclude any existing inventory. Select: 1 3 year(s) 1 year(s) 4 year(s) 2 year(s Which description best fits Andrews? 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 your company's current strategy? Select: 1 Andrews is a niche cost leader Andrews is a niche differentiator Andrews is a broad differentiator Andrews is a broad cost leader Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Chester has obtained a productivity index of 109.6%. This means that Chester's labor costs would be increased by 9.6% if it did not have these productivity improvements. This is a competitive advantage that Chester can sustain or even widen further if its competitors have no HR initiatives. Now, refer to the Income Statement in Chester's Annual Report. How much did Chester's productivity improvements save it in direct labor costs (in thousands) last year? Select: 1 $29,818 $766 $3,211 $3,137 Deal is a product of the Digby company. Digby's sales forecast for Deal is 2067 units. Digby wants to have an extra 10% of units on hand above and beyond their forecast in case sales are better than expected. (They would risk the possibility of excess inventory carrying charges rather than risk lost profits on a stock out.) Taking current inventory into account, what will Deal's Production After Adjustment have to be in order to have a 10% reserve of units available for sale? Select: 1 2053 units 2067 units 2260 units 2274 units Demand is created through meeting customer buying criteria, credit terms, awareness (promotion) and accessibility (distribution). According to the Thrift segment's customers, which of these products was the most competitive at the end of last year? Select: 1 Deal Ant Cell Cat Bam is a product of the Baldwin company which is primarily in the Nano segment, but is also sold in another segment. Baldwin starts to create their sales forecast by assuming all policies (R&D, Marketing, and Production) for all competitors are equal this year over last. For this question assume that all 1129 of units of Bam are sold in the Nano segment. If the competitive environment remains unchanged what will be the Bam product?s demand next year (in 000?s)? Select: 1 1129 1208 2574 1287 Investing $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 $163,608,638. Assuming similar sales next year, the 1.7% increase in demand will provide $2,781,347 of additional revenue. With the overall contribution margin of 34.2%, after direct costs this revenue will add $951,221 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 TQM investment will not have a significant financial impact 25 months 17 months 9 months Looking forward to next year, if Baldwin?s current cash amount is $17,478 (000) and cash flows from operations next period are unchanged from this period and Baldwin 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 Baldwin to the most risk of needing an emergency loan? Select: 1 Repurchases $10,000 (000) of stock Issues 100 (000) shares of common stock Purchases assets at a cost of $15,000 (000) Sells $7,000 (000) of long-term assets 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. Andrews?s product Ant currently has an awareness level of 79% . While an important product for Andrews, Ant?s promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Ant loses one-third of its awareness each year, what will Ant?s awareness level be next year? Select: 1 74% 53% 58% 79%