(Solved) According to information found on the production analysis page of the Inquirer, Baldwin sold 1128 units of Buddy in the current year

According to information found on the production analysis page of the Inquirer, Baldwin sold 1128 units of Buddy in the current year. Assuming that Buddy maintains a constant market share, all the units of Buddy are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Buddy will not be able to meet future demand unless the company adds production capacity? Exclude any existing inventory.
Select: 1
1 year(s)
3 year(s)
4 year(s)
2 year(s)
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 broad differentiator
Andrews is a niche differentiator
Andrews is a niche cost leader
Andrews is a broad cost leader
Baldwin’s Elite product Bat has an awareness of 72%. Baldwin’s Bat product manager for the Elite segment is determined to have more awareness for Bat than Andrews’ Elite product Abby. She knows that the first $1M in promotion generates 22% new awareness, the second million adds 23% more and the third million adds another 5%. She also knows one-third of Bat’s existing awareness is lost every year. Assuming that Abby’s awareness stays the same next year (77%), out of the promotion budgets below, what is the minimum Baldwin’s Elite product manager should spend in promotion to earn more awareness than Andrews’ Abby product?
Select: 1
2M
1M
3M
Nothing
Demand is created through meeting customer buying criteria, credit terms, awareness (promotion) and accessibility (distribution). According to the Thrift segment’s customers, which of these products was the most competitive at the end of last year?
Select: 1
Alan
Cure
Dart
Camp
Investing $2,000,000 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.xls 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 $2,000,000 TQM investment, rounded to the nearest month?
Select: 1
9 months
25 months
TQM investment will not have a significant financial impact
17 months
Selected Financial Statistics
Andrews Baldwin Chester Digby
ROS 12.3% 9.0% 5.7% 8.6%
Asset Turnover 1.32 1.28 0.91 0.94
ROA 16.3% 11.5% 5.2% 8.1%
Leverage (Assets/Equity) 1.7 1.9 2.7 2.4
ROE 28.3% 21.8% 13.8% 19.1%
Emergency Loan $0 $0 $0 $0
Sales $163,508,343 $119,634,264 $131,743,001 $118,743,986
EBIT $36,517,609 $21,078,734 $21,799,379 $23,725,791
Profits $20,172,293 $10,722,727 $7,539,554 $10,177,267
Cumulative Profit $0 $0 $0 $0
SG&A / Sales 7.8% 10.3% 9.6% 11.2%
Contrib. Margin % 34.1% 32.9% 33.8% 38.8%
Percent of Sales Bar Chart Market Share Pie Chart
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Stocks & Bonds COMP-XM® INQUIRER Round: 0

December 31 , 2017

Stock Market Summary
Company Close Change Shares MarketCap ($M) Book Value EPS Dividend Yield P/E
Andrews $95.61 $15.14 2,051,119 $196 $34.74 $9.83 $6.50 6.8% 9.7
Baldwin $54.93 $6.27 1,909,810 $105 $25.72 $5.61 $2.35 4.3% 9.8
Chester $44.71 $0.94 2,566,155 $115 $21.32 $2.94 $4.96 11.1% 15.2
Digby $53.14 $10.88 2,173,342 $115 $24.47 $4.68 $2.89 5.4% 11.3
Closing Stock Price Chart
Bond Market Summary
Company Series# Face Yield Close$ S&P
Andrews
13.5S2019 $11,300,000 13.0% 103.58 BB
11.2S2024 $8,837,000 11.3% 99.07 BB
11.9S2025 $7,072,000 11.6% 102.54 BB
Baldwin
13.5S2019 $11,300,000 13.2% 102.53 B
11.1S2026 $2,505,867 11.7% 95.20 B
11.2S2027 $5,671,177 11.7% 95.48 B
Chester
13.5S2019 $11,300,000 13.5% 100.17 C
11.3S2024 $10,417,600 12.4% 90.83 C
12.5S2025 $14,665,611 13.1% 95.74 C
12.5S2026 $7,975,862 13.1% 95.45 C
12.5S2027 $9,473,322 13.1% 95.19 C
Digby
13.5S2019 $11,300,000 13.4% 100.67 CC
11.2S2024 $8,637,463 12.2% 91.62 CC
12.4S2025 $5,827,834 12.8% 96.65 CC
11.9S2027 $15,600,633 12.7% 93.51 CC
Next Year’s Prime Rate 8.00%
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Financial Summary COMP-XM® INQUIRER Round: 0
December 31, 2017
Cash Flow Statement Survey Andrews Baldwin Chester Digby
Cash flows from operating activities
Net Income (Loss) $20,172 $10,723 $7,540 $10,177
Adjustment for non-cash items:
Depreciation $6,455 $5,625 $9,527 $8,293
Extraordinary gains/losses/writeoffs $0 $0 $0 $0
Changes in current assets and liabilities:
Accounts payable $735 $1,216 $1,457 $608
Inventory ($11,210) ($2,062) ($2,615) $1,388
Accounts receivable $15 ($1,778) ($1,043) ($946)
Net cash from operations $16,168 $13,725 $14,864 $19,521
Cash flows from investing activities
Plant improvements (net) ($3,520) ($6,500) ($15,800) ($26,642)
Cash flows from financing activities
Dividends paid ($13,332) ($4,479) ($12,733) ($6,270)
Sales of common stock $0 $0 $0 $0
Purchase of common stock ($1,935) ($1,833) $0 $0
Cash from long term debt issued $0 $5,671 $9,473 $15,601
Early retirement of long term debt $0 $0 $0 $0
Retirement of current debt ($5,725) ($10,493) ($22,180) ($15,869)
Cash from current debt borrowing $8,184 $12,110 $21,713 $19,612
Cash from emergency loan $0 $0 $0 $0
Net cash from financing activities ($12,808) $977 ($3,727) $13,073
Net change in cash position ($160) $8,201 ($4,662) $5,952
Balance Sheet Survey Andrews Baldwin Chester Digby
Cash $32,014 $17,334 $32,316 $32,550
Accounts Receivable $13,439 $9,833 $10,828 $9,760
Inventory $25,825 $17,117 $10,293 $6,407
Total Current Assets $71,278 $44,284 $53,437 $48,717
Plant and equipment $96,824 $84,380 $142,900 $124,400
Accumulated Depreciation ($44,409) ($35,023) ($51,265) ($47,289)
Total Fixed Assets $52,415 $49,357 $91,635 $77,111
Total Assets $123,693 $93,641 $145,072 $125,828
Accounts Payable $9,516 $6,601 $7,283 $5,796
Current Debt $15,717 $18,436 $29,246 $25,494
Long Term Debt $27,209 $19,477 $53,832 $41,366
Total Liabilities $52,443 $44,514 $90,362 $72,657
Common Stock $12,081 $9,100 $24,679 $14,385
Retained Earnings $59,170 $40,027 $30,031 $38,786
Total Equity $71,250 $49,127 $54,710 $53,171
Total Liabilities & Owners’ Equity $123,693 $93,641 $145,072 $125,828
Income Statement Survey Andrews Baldwin Chester Digby
Sales $163,508 $119,634 $131,743 $118,744
Variable Costs (Labor, Material, Carry) $107,672 $80,302 $87,231 $72,680
Depreciation $6,455 $5,625 $9,527 $8,293
SGA (R&D, Promo, Sales, Admin) $12,835 $12,317 $12,712 $13,265
Other (Fees, Writeoffs, TQM, Bonuses) $29 $311 $474 $780
EBIT $36,518 $21,079 $21,799 $23,726
Interest (Short term, Long term) $4,850 $4,246 $9,963 $7,749
Taxes $11,084 $5,892 $4,143 $5,592
Profit Sharing $412 $219 $154 $208
Net Profit $20,172 $10,723 $7,540 $10,177
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Production Analysis COMP-XM® INQUIRER Round: 0
December 31, 2017
Production vs Capacity Chart
Production Information
Name Primary Segment Units Sold Unit Inven tory Revision Date Age Dec.31 MTBF Pfmn Coord Size Coord Price Material Cost Labor Cost Contr. Marg. 2nd Shift &
Over-
time
Auto mation Next Round Capacity Next Round Plant Utiliz.
Apple Core 1,830 47 12/9/2016 2.2 22000 7.9 12.2 $32.00 $11.60 $8.96 35% 50% 5.0 1,200 149%
Agape Nano 922 264 11/9/2017 1.1 24000 10.6 7.6 $40.00 $16.13 $10.29 33% 42% 4.0 728 141%
Abby Elite 772 216 11/14/2017 1.1 26000 12.7 9.6 $42.00 $16.81 $9.80 36% 22% 4.0 714 121%
Alan Thrift 1,371 758 4/13/2015 5.1 20000 5.2 14.9 $26.00 $8.13 $7.90 33% 90% 6.0 1,130 188%
Buddy Nano 1,128 86 11/12/2017 2.2 23000 8.9 9.4 $30.00 $13.98 $9.50 25% 93% 5.0 570 191%
Bat Elite 436 145 12/13/2017 1.9 25000 12.1 10.2 $38.00 $15.87 $7.73 41% 0% 5.0 700 64%
Beetle Nano 960 262 12/22/2017 1.0 23000 10.5 7.6 $37.00 $15.79 $8.65 33% 33% 5.0 850 132%
Bill Elite 865 240 12/5/2017 1.0 25000 12.5 9.6 $39.00 $16.39 $8.14 36% 13% 5.0 950 111%
Cure Thrift 1,340 236 12/11/2017 2.8 17000 6.3 13.8 $19.00 $8.40 $4.03 41% 33% 8.0 1,050 132%
Camp Thrift 1,674 284 12/19/2017 2.6 17000 6.5 13.6 $19.00 $8.61 $4.22 37% 57% 8.0 1,250 155%
Cedar Core 1,290 148 12/3/2017 1.2 18000 8.9 10.8 $27.00 $11.68 $7.38 30% 93% 6.0 900 191%
Clack Core 1,417 83 11/19/2017 1.2 20000 9.6 11.3 $28.00 $12.39 $7.38 30% 93% 6.0 950 191%
Dune Thrift 1,726 22 6/28/2018 3.5 14000 5.5 14.6 $20.00 $6.65 $2.82 51% 100% 9.0 1,000 198%
Dart Core 1,881 14 11/30/2017 1.2 16000 8.1 12.0 $22.00 $10.01 $5.64 31% 100% 7.0 1,150 198%
Deft Nano 699 162 12/22/2017 1.1 18000 10.0 8.3 $31.00 $13.64 $6.24 36% 25% 6.0 750 124%
Dim Elite 604 134 11/5/2017 1.1 20000 12.0 10.1 $35.00 $14.36 $7.09 38% 8% 5.0 800 107%
COMP-XM® INQUIRER Page 4

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