Chester's product manager is considering lowering the price of the Cell 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 Cell's contribution margin be if the price is lowered? Select: 1 29.99% 32.30% 34.00% 31.57% According to information found on the production analysis page of the Inquirer, Digby sold 1127 units of Don in the current year. Assuming that Don maintains a constant market share, all the units of Don are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Don 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)
Answers
Answer:
Explanation: Chester's product manager is considering lowering the price of the Cell 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 Cell's contribution margin be if the price is lowered?
Select: 1
29.99%
32.30%
34.00%
31.57%
2-
In three years, assuming the competitive environment remains unchanged, how many units of Cat will Chester be selling in the Nano market segment?
Select: 1
464
603
764
687
3-
ccording to information found on the production analysis page of the Inquirer, Digby sold 1127 units of Don in the current year. Assuming that Don maintains a constant market share, all the units of Don are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Don 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)
4-
Which description best fits Digby in your industry? 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 this competitor?
Select: 1
Digby is a broad cost leader
Digby is a niche differentiator
Digby is a broad differentiator
Digby is a niche cost leader
5-
Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Baldwin has obtained a productivity index of 109.4%. This means that Baldwin's labor costs would be increased by 9.4% if it did not have these productivity improvements. This is a competitive advantage that Baldwin can sustain or even widen further if its competitors have no HR initiatives. Now, refer to the Income Statement in Baldwin's Annual Report. How much did Baldwin's productivity improvements save it in direct labor costs (in thousands) last year?
Select: 1
$821
$3,138
$3,060
$29,761
6-
nvesting $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 $163,290,917. 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 $2,000,000 TQM investment, rounded to the nearest month?
Select: 1
17 months
9 months
25 months
TQM investment will not have a significant financial impact
7-
Looking forward to next year, if Digby’s current cash amount is $19,378 (000) and cash flows from operations next period are unchanged from this period and Digby 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 Digby to the most risk of needing an emergency loan?
Select: 1
Sells $7,000 (000) of long-term assets
Issues 100 (000) shares of common stock
Purchases assets at a cost of $15,000 (000)
Repurchases $10,000 (000) of stock
8-
Assuming Digby’s current market share for its Drum product remains the same, how many units of Drum should Digby expect to sell in the primary segment for the upcoming year?
Select: 1
401 units
292 units
302 units
441 units
9-
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 Ate currently has an awareness level of 78% . While an important product for Andrews, Ate’s promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Ate loses one-third of its awareness each year, what will Ate’s awareness level be next year?
Select: 1
73%
57%
78%
52%
Mark me The Brainliest
The answer to the first question is 31.57%.
- The contribution margin is the difference between the sales price and the cost of goods sold (COGS).
- In this case, the price of the Cell product is being lowered by $2.50. This means that the sales price will be reduced by $2.50 and the COGS will remain the same.
- Therefore, the contribution margin will be reduced by $2.50. The contribution margin before the price reduction was $7.50,
- so the contribution margin after the price reduction will be $5.00. This gives us a contribution margin of 31.57% ($5/$16).
The answer to the second question is 2 years.
- To calculate the number of years until Don will not be able to meet future demand, we need to first calculate the total demand for Don.
- We can do this by multiplying the current sales of 1127 units by the growth rate (which in this case is assumed to remain constant).
- This gives us a total demand of 4508 units (1127 x 4). Since Don currently has no inventory,
- the company will need to add production capacity in order to meet this demand. The total capacity needed to meet this demand in two years is 9006 units (4508 x 2).
Therefore, the company will need to add production capacity within two years in order to meet future demand.
#SPJ3