Looking forward to next year, if Baldwin's current cash amount is $19,743 (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
Issues 100 (000) shares of common stock
Sells $7,000 (000) of long-term assets
Repurchases $10,000 (000) of stock
Purchases assets at a cost of $15,000 (000)
A 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 Chester's Annual Report. The direct labor costs for Chester were $32,584. 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 Chester that led to such savings?
Select: 1
38.6%
155.2%
161.4%
44.8%
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 Awe currently has an awareness level of 80% . While an important product for Andrews, Awe's 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 Awe's awareness level be next year?
Select: 1
53%
58%
79%
74%
Cozy'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?
Select: 1
Re-position the product to the ideal spot within the segment
Lower the unit selling price to the bottom limit of the segment price range
Increase awareness by 5%
Increase the unit contribution margin by decreasing the MTBF
In three years, assuming the competitive environment remains unchanged, how many units of Bolt will Baldwin be selling in the Nano market segment?
Select: 1
431
639
716
561
Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales budget, the Daze 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
$21.00
$24.50
$22.75
$23.00
According to information found on the production analysis page of the Inquirer, Baldwin sold 1127 units of Bolt in the current year. Assuming that Bolt maintains a constant market share, all the units of Bolt are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Bolt 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)
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 differentiator
Andrews is a broad cost leader
Andrews is a niche cost leader
Andrews is a broad differentiator
Dug is a product of the Digby company. Digby's sales forecast for Dug is 2071 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 Dug's Production After Adjustment have to be in order to have a 10% reserve of units available for sale?
Select: 1
2264 units
2278 units
2057 units
2071 units
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 $163,405,682. Assuming similar sales next year, the 1.7% increase in demand will provide $2,777,897 of additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will add $947,263 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
TQM investment will not have a significant financial impact
25 months