Comp XM questions with verified answers 2026\2027
A+ Grade
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 Digby's Annual Report. The
direct labor costs for Digby were $32,486. 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 Digby that led to such savings?
- correct answer 161.6%
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
$163,189,230. Assuming similar sales next year, the 1.7% increase in demand will provide $2,774,217 of
additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will
add $946,008 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?
- correct answer 9 months
Bam's product manager is under pressure to increase market share, but is uncertain about how to make
the product more competitive. The product is reasonably well-positioned in the Thrift segment and
enjoys relatively high awareness and accessibility. Which of the following would most likely result in a
quick increase in market share?
- correct answer Lower the unit selling price to the bottom limit of the segment price range
Looking forward to next year, if Baldwins current cash amount is $20,132 (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
A+ Grade
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 Digby's Annual Report. The
direct labor costs for Digby were $32,486. 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 Digby that led to such savings?
- correct answer 161.6%
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
$163,189,230. Assuming similar sales next year, the 1.7% increase in demand will provide $2,774,217 of
additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will
add $946,008 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?
- correct answer 9 months
Bam's product manager is under pressure to increase market share, but is uncertain about how to make
the product more competitive. The product is reasonably well-positioned in the Thrift segment and
enjoys relatively high awareness and accessibility. Which of the following would most likely result in a
quick increase in market share?
- correct answer Lower the unit selling price to the bottom limit of the segment price range
Looking forward to next year, if Baldwins current cash amount is $20,132 (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
