1. 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 cost leader
Andrews is a niche differentiator
Andrews is a broad cost leader
Andrews is a broad differentiator
2. Digby 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?
Select: 1
Retiring the oldest bond
A $5 dividend
Liquidate the entire inventory
Purchasing $18,000 (000) worth of plant and equipment
3. Select all of the following statements that are true four years from now, in the year 2017.
Select: 2
The Nano segment will demand 5,405 thousand units
The Elite segment will demand 5,871 thousand units
The Thrift segment will demand 7,744 thousand units
The Core segment will demand 9,774 thousand units
5. Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% 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 3.0% increase in demand will provide $4,898,727 of additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will add $1,670,466 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
14 months
TQM investment will not have a significant financial impact
5 months
10 months
6. Assuming Digby's current market share for its Dug product remains the same, how many units of Dug should Digby expect to sell in the primary segment for the upcoming year?
Select: 1
302 units
441 units
401 units
292 units