Looking forward to next year, if Baldwin’s current cash amount is $17,478 (000)

Question
Looking forward to next year, if Baldwin’s current cash amount is $17,478 (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 $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 Baldwin to the most risk of needing an emergency loan?

Select: 1

Sells $7,000 (000) of long-term assets

Repurchases $10,000 (000) of stock

Purchases assets at a cost of $15,000 (000)

Issues 100 (000) shares of common stock

A productivity index of 110% means that a company’s labor costs would have been 10% higher if it had not made production improvements. Now refer to the Income Statement in Chester’s Annual Report. The direct labor costs for Chester were $32,680. These labor costs could have been $20,000 higher if investments in training that increased productivity had not been made. What was the productivity index for Chester that led to such savings?

Select: 1

161.2%

155.1%

38.8%

44.9%

Assuming Digby’s current market share for its Dell product remains the same, how many units of Dell should Digby expect to sell in the primary segment for the upcoming year?

Select: 1

1636 units

1783 units

1500 units

1650 units

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 78% . 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

52%

73%

57%

78%

Baker’s product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Baker product manager do in order to improve upon the buying criteria, and thus potentially increase demand?

Select: 1

Increase the promotion budget to gain greater awareness

Increase MTBF by 2000

Reposition Baker to make it even smaller and higher performing

Lower the selling price since it is the second most important buying criteria

In three years, assuming the competitive environment remains unchanged, how many units of Baker will Baldwin be selling in the Nano market segment?

Select: 1

639

716

432

561

Digby’s product manager is considering lowering the price of the Dot product by $2.50 and wants to know what the impact will be on the product’s contribution margin. Assuming no inventory carry costs, what will Dot’s contribution margin be if the price is lowered?

Select: 1

31.58%

30.00%

32.30%

34.00%

According to information found on the production analysis page of the Inquirer, Baldwin sold 1129 units of Baker in the current year. Assuming that Baker maintains a constant market share, all the units of Baker are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Baker will not be able to meet future demand unless the company adds production capacity? Exclude any existing inventory.

Select: 1

3 year(s)

4 year(s)

1 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 and a niche differentiator

Andrews is a broad cost and a niche cost leader