1.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 Able currently has an awareness level of 79% . While an important product for Andrews, Able's promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Able loses one-third of its awareness each year, what will Able's awareness level be next year?
Select: 1
74%
53%
58%
79%
2. Cute'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
Increase the unit contribution margin by decreasing the MTBF
Increase awareness by 5%
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
3.Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales budget, the Dell 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
$22.75
$21.00
$24.50
$23.00
4.According to information found on the production analysis page of the Inquirer, Baldwin sold 1125 units of Buzz in the current year. Assuming that Buzz maintains a constant market share, all the units of Buzz are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Buzz will not be able to meet future demand unless the company adds production capacity? Exclude any existing inventory.
Select: 1
4 year(s)
3 year(s)
1 year(s)
2 year(s)
5.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 differentiator
Digby is a broad cost leader
Digby is a niche differentiator
Digby is a niche cost leader
6.Buzz is a product of the Baldwin company which is primarily in the Nano segment, but is also sold in another segment. Baldwin starts to create their sales forecast by assuming all policies (R&D, Marketing, and Production) for all competitors are equal this year over last. For this question assume that all 1125 of units of Buzz are sold in the Nano segment. If the competitive environment remains unchanged what will be the Buzz product's demand next year (in 000's)?
Select: 1
1204
1125
2566
1283
7.Looking forward to next year, if Baldwin's current cash balance is $20,132 (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 100 (000) shares of stock at the current stock price
Issues $200 (000) of long-term debt
Pays $40 (000) in dividends

Which of the following activities will expose Baldwin to the most risk of needing an emergency loan?
Select: 1
Purchases assets at a cost of $15,000 (000)
Sells $5,000 (000) of their Long-term assets
Retires $20,000 (000) in long-term debt
Liquidates the entire inventory
8.A productivity index of 110% means that a company's labor costs would have been 10% higher if it had not made production improvements. Assume that Chester had a productivity index of 112% and that Digby had a productivity index of 103%. Now refer to the Income Statements in the Annual Report for Chester and Digby. Using the labor costs shown in the Income Statements, how much more did Chester save in direct labor costs compared to Digby by having a higher productivity index?
Select: 1
$3,168
$2,851
$3,485
$3,326
9.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 $163,085,264. Assuming similar sales next year, the 3.0% increase in demand will provide $4,892,558 of additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will add $1,668,362 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
10 months
14 months
TQM investment will not have a significant financial impact
5 months
10.From a marginal analysis perspective, what is the inventory carry cost for Andrews if the company carries one additional unit of Able in inventory at the end?
Select: 1
$1.20
$3.85
$1.92
$9.98