1) Which mission statement best represents the Chester company?

Consistency and affordability are our goals. Our central mission is to offer dependable, low-price products that our customers can count on.

Innovation meets revolution. We create value for our customers through breakthrough designs that lead to unique high-performance products.

Providing value to our customers is why we get up in the morning. We accomplish this by offering products at a low price our customers can afford across a wide variety of market segments.

Lasting innovation is our motivation. We build premium products that are elegantly designed to meet the needs of a variety of market segments.

2) What is the Profit Margin of Chester?

22.86

7.25

.14

4.37

3) The Andrews Company has just issued $24,613,433 in dividends last year. The effect of this payment on the balance sheet is:

Equity will decrease $24,613,433

Expenses will increase $24,613,433

Net Profit will decrease $24,613,433

Liabilities will increase $24,613,433

4) The Digby Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,090,000. What will the book value of this purchase (exclude all other plant and equipment) be after its third year of use? (Use FASB GAAP)

$35,446,667

$33,538,000

$32,720,000

$29,448,000

5) Review the Inquirer to determine Baldwin’s current strategy. Where will they seek a competitive advantage? From the following list, select the top five sources of competitive advantage that Baldwin would be most likely to pursue. Select: 5

Seek the lowest price in their target market while maintaining a competitive contribution margin

Seek excellent product designs, high awareness, and high accessibility

Seek high plant utilization, even if it risks occasional small stockouts

Seek high automation levels

Reduce cost of goods through TQM initiatives

Reduce labor costs through training and recruitment

Accept lower plant utilization and higher capacities to insure sufficient capacity is available to meet demand

Offer attractive credit terms

Increase demand through TQM initiatives

Add additional products