Exam (elaborations)
Comp XM (2).
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Exam of 3 pages for the course Comp XM Practice at Comp XM Practice (Comp XM (2).)
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Comp XMA productivity index of 110% means that a company's labor costs would have been 10%
higher if it had not made production improvements. Now refer to the Income Statement
in Digby's Annual Report. The direct labor costs for Digby 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 Digby that led to
such savings? - ANS-161.6%
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? - ANS-9 months
Bam's product manager is under pressure to increase market share, but is uncertain
about how to make the product more competitive. The product is reasonably
well-positioned in the Thrift segment and enjoys relatively high awareness and
accessibility. Which of the following would most likely result in a quick increase in
market share? - ANS-Lower the unit selling price to the bottom limit of the segment
price range
Looking forward to next year, if Baldwins current cash amount is $20,132 (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
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