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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 $163,290,917. 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 $1,500,000 TQM investment, rounded to the nearest month?
In three years, assuming the competitive environment remains unchanged, how many units of Buzz will Baldwin be selling in the Nano market segment?
According to information found on the production analysis page of the Inquirer, Chester sold 1127 units of City in the current year. Assuming that City maintains a constant market share, all the units of City are sold in the Nano market segment and the growth rate remains constant, how many years will it be before City will not be able to meet future demand unless the company adds production capacity? Exclude any existing inventory.
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?
Dome is a product of the Digby company. Digby’s sales forecast for Dome is 1855 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 Dome’s Production After Adjustment have to be in order to have a 10% reserve of units available for sale?
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?
Baldwin’s product manager is considering lowering the price of the Brat 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 Brat’s contribution margin be if the price is lowered?
Chester currently has $19,378 (000) in cash and management has decided to issue stocks and bonds worth an additional $8,000 (000). Assuming that cash from operations will be the same for each of the following activities, which activity exposes this company to the most risk of being issued an emergency loan?
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