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If you want to add 500,000 units of capacity to an assembly line with an
automation rating of 5, how much will it cost? (Hint: $6 for floor space
and $4 times automation level. Ans✓✓✓13,000,000
Budgeting money to Quality initiative will lead to these outcomes
except: Ans✓✓✓increase Labor Costs.
Increasing a product's reliability will result in which of the following
changes to production costs? Ans✓✓✓Higher material cost
Adding one additional unit of capacity costs Ans✓✓✓$6 + ($4 x
Automation Level).
Which customer group or market segment seeks proven products, are
indifferent to technological sophistication, and are price motivated?
Ans✓✓✓Low End customers
What is the most important criteria to a "Low End Segment" customer?
Ans✓✓✓Price
Which of the following is true about the Accounts Receivable Lag and
its implications on demand? Ans✓✓✓At 60 days, demand is 98.5%
, An increase in promotional budgets have: Ans✓✓✓decreasing returns
over time.
If your short-term interest rate is 12.1%, then your bond rate is:
Ans✓✓✓13.5%.
When a segment's product demand outstrips supply, Ans✓✓✓both a and
c are true.
What is the starting awareness percentage of a new product?
Ans✓✓✓50%
If you purchase production capacity and automation: Ans✓✓✓it is
available in the next year.
What are the three effects of an increase in Automation? Ans✓✓✓a, c, d
How much does it cost for MTBF per 1,000 hours of reliability?
Ans✓✓✓a, c, d
When a segment's product demand outstrips supply, Ans✓✓✓both a and
c are true.