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1) Investing $1,500,000 in TQM's Channel Support Systems initiative will at minimum raise demand for products= 1.7% in this and in all future rounds. Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,189,230. Assuming similar sales next year, 1.7% increase in demand will provide $2,774,217 of extra revenue. With overall contribution margin of= 34.1%, after direct costs this revenue will add $946,008 to bottom line. For ease, suppose that demand increase and margins will stay at last year's levels. How long will it take to attain payback on initial $1,500,000 TQM investment?

i) 6 months
ii) TQM investment will not have a significant financial impact
iii) 19 months
iv) 13 months

2) Suppose Digby’s present market share for its Dug product stays the same, how many units of Dug must Digby expect to sell in main segment for upcoming year?

i) 440 units
ii) 359 units
iii) 400 units
iv) 339 units

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