COMPXM QUESTIONS

Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Digby has obtained a productivity index of 109.4%. This means that Digby's labor costs would be increased by 9.4% if it did not have these productivity improvements. This is a competitive advantage that Digby can sustain or even widen further if its competitors have no HR initiatives. Now, refer to the Income Statement in Digby's Annual Report. How much did Digby's productivity improvements save it in direct labor costs (in thousands) last year?

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Looking forward to next year, if Chester’s current cash amount is $17,334 (000) and cash flows from operations next period are unchanged from this period and Chester 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 Chester to the most risk of needing an emergency loan?

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Investing $1,500,000 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 Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,508,343. Assuming similar sales next year, the 1.7% increase in demand will provide $2,779,642 of additional revenue.   With the overall contribution margin of 34.1%, after direct costs this revenue will add $947,858 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 $1,500,000 TQM investment, rounded to the nearest month?

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From a marginal analysis perspective, what is the inventory carry cost for Andrews if the company carries one additional unit of Axe in inventory at the end?

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Increasing the promotional budget for a product in order to increase awareness is not advisable in the short run under which of the following circumstances?

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Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales budget, the Bit 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?

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