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MAN 4752 Comp XM Exam Verified 2024
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MAN 4752 Comp XM Exam Verified 2024
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MAN 4752 Comp XM Exam Verified 2024A firm that has the lowest variable costs as a percentage of sales will most likely have
what? - ANSWER-The highest CM
Almost fully depreciated plant and equipment can lead to what? - ANSWER-High asset
turnover rate
An assembly line with higher automation usually has what? (4) - ANSWER-1. Fewer
workers
2. Lower labor costs
3. Higher profits
4. Longer R&D revisions
Approximately how many units did Fire miss selling last year? - ANSWER-To calculate
the missed sales look at the "Actual" and "Potential Market Share in Units" for Fire in the
"Market Share Report" on page 10. Subtract the total actual market share percent for
Fire from the total potential market share percent for Fire. Multiply the product of the
subtraction by the total potential market share unit demand. The product of this
calculation will be the number of additional units Fire could have sold (missed sales)
had they not stocked out.
Baldwin has a policy of carrying two months (16.7%) of their sales as inventory in case
demand is unusually strong. Using the sales forecast created by the December survey
scores and a 1% scrap rate, what should their production schedule be? - ANSWER-1.
Multiply the inventory factor (16.7%) by the unit sales forecast (from December survey
scores)
2. Add this back to the unit sales forecast
3. Subtract the current inventory (production before adjustment)
4. Multiply production before adjustment by 1 + scrap rate (1.01)
Cost leadership strategies usually focus on what? (1 a-e) - ANSWER-1. Production
efficiencies to reduce their cost to make sensors.
a) lowering labor costs
b) lowering material costs
c) increasing volume produced
d) lowering promo budgets
e) lowering sales budgets
Customer awareness deals with what?
What about customer accessibility? - ANSWER-Awareness: Promotion budget
,Accessibility: Sales budget
Differentiation strategies usually focus on what? (4) - ANSWER-1. Spending more
money on R&D to create the "perfect" sensor
2. Spending more money on sales and promo budgets to market their products
3. Using higher quality materials
4. Using lower automation ratings
Dot is considering automating their line from a level of 6 to 8. If they do this, what will be
the (before tax) payback period on this investment? - ANSWER-1. Find the amount
invested in capacity
a) Multiply Dot's capacity by $4
b) Multiply step a by two for the number of levels of automation you increase
2. Find annual labor cost savings
a) Multiply Dot's labor cost by 10% for each point in automation (20%)
b) Multiply step a by the number of sensors Dot sold last year
3. Payback period = (investment) / (cost savings)
Ferris' CFO believes that the firm could have operated more efficiently, lowered costs,
and increased profits by $5,000,000 without changing sales, assets, or capital structure.
Had they cut costs, what would their ROE have been? - ANSWER-1. Add $5,000,000 to
the profit of Ferris
2. Divide step one by Ferris' total equity
OR
1. Add $5,000,000 to the profit of Ferris
2. Divide step one by Ferris' sales (= ROS)
3. Multiply new RS by Ferris' Asset Turnover
4. Multiply step 4 by leverage
Ferris' management has a policy of carrying 60 days of sales in inventory at all times.
How much do they need to expand or contract their inventory to achieve this goal? -
ANSWER-1. (sales) * (2/12)
--- 60 days = 2/12
2. (step 1) - (current inventory on B/S survey)
For a product to be a worthy competitor it must have a survey score over what? -
ANSWER-5
From the owner's perspective should a firm use leverage? - ANSWER-Yes
, Given a firm's targeted utilization rate, how do you determine the amount of capacity
they SHOULD HAVE had? - ANSWER-Units sold / target rate
Given an anticipated profit and anticipated dividend (without issuing additional shares),
how can you determine how much retained earnings will increase in the next year? -
ANSWER-1. (dividend per share) * (# shares outstanding)
2. Projected profit - (answer from step 1)
How are ROA, ROS, ROE, leverage, and the asset turnover rate related? - ANSWER-
ROS * Asset Turnover = ROA
ROA * Leverage = ROE
How can a product have the highest survey score but have the lowest sales? (3) -
ANSWER-1. stock outs
2. short of capacity
3. late revision date
How can you determine the amount of revenue lost given a product stocking out? -
ANSWER-Unit sales missed * product's price
How can you determine which company used its assets most efficiently? - ANSWER-
Whichever one has the highest asset turnover.
How can you determine which firm will be able to issue debt at the lowest interest rate?
- ANSWER-Whichever firm has the best credit rating.
How can you find the number of units a certain product had available to sell? -
ANSWER-Units sold + unit inventory
How can you increase profitability? - ANSWER-Increase the CM
How can you reduce the depreciation expense? - ANSWER-By reducing capacity
How can you tell how many different products are emerging next year? - ANSWER-No
sales but have both capacity and automation
How can you tell if a segment is increasing or decreasing in rivalry? - ANSWER-
Simulation begins with six firms in each segment having 17% market share.
If more than 6 = increasing competition
Is less than 6 = decreasing competition
How do you calculate a common size income statement? - ANSWER-Divide everything
by sales
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