COMP XM COMPREHENSIVE REVIEW EXAM
SCRIPT EXAM QUESTIONS AND SOLUTIONS
2026 100% CORRECT.
◉ explanation of the above question. Answer: To calculate the
investment in automation, multiply Dot's capacity by $4 (automation
cost per unit of capacity for every level of automation) for every unit
of capacity. Multiply the product of this calculation by the number of
points you are increasing your automation (2 points of automation).
To calculate the annual labor savings from increasing automation two
points, multiply Dot's labor cost by 10% labor savings for each point
of automation (20%). Multiply the product of that calculation by the
number of sensors Dot sold last year.
Payback (years) = project investment / annual savings.
◉ If a company were to add capacity in round 6, what round would
the capacity be available to use?. Answer: 7
◉ formula to find net worth. Answer: total assets - total liabilities
◉ Digby had low variable costs and low selling, general and
administrative (SG&A) expenses. What strategy are they likely
pursuing?. Answer: cost leader
,◉ straight line depreciation steps. Answer: purchase cost - salvage
value = $X
1/# years of useful life = %
X% * $X = total
◉ working capital formula. Answer: current assets - current liabilities
◉ positive working capital means that. Answer: the company is able
to pay off its short-term liabilities with its short term assets.
◉ negative working capital means that. Answer: a company currently
is unable to meet its short-term liabilities with its current assets.
◉ Coupon. Answer: A coupon payment on a bond is a periodic
interest payment that the bondholder receives during the time between
when the bond is issued and when it matures.
◉ Current Yield factors. Answer: in the current value of the bond
14.5% X 100/102.61 (Current bond price)
◉ yield. Answer: dividend/ price
◉ P/E. Answer: price / Earnings per share
, ◉ To calculate the investment in automation. Answer: multiply Feat's
capacity by $4 (automation cost per unit of capacity for every level of
automation) for every unit of capacity.
Multiply the product of this calculation by the number of points you
are increasing your automation. $4 * 1 (automation level increase) *
feat capacity
◉ To calculate the annual labor savings from increasing automation
one point. Answer: multiply Feat's labor cost by 10% labor savings
for each point of automation. Multiply the product of that calculation
by the number of sensors Feat sold last year. 10% of labor cost for
Feat (since it is only one level up) * units sold
◉ Payback (years). Answer: project investment / annual savings
◉ asset turnover formula. Answer: divide sales by total assets
An asset turnover of three means there were $3 in sales for every
dollar in assets.
◉ what causes a high asset turnover (3). Answer: low cash
low inventory
plant and equipment nearly depreciated
SCRIPT EXAM QUESTIONS AND SOLUTIONS
2026 100% CORRECT.
◉ explanation of the above question. Answer: To calculate the
investment in automation, multiply Dot's capacity by $4 (automation
cost per unit of capacity for every level of automation) for every unit
of capacity. Multiply the product of this calculation by the number of
points you are increasing your automation (2 points of automation).
To calculate the annual labor savings from increasing automation two
points, multiply Dot's labor cost by 10% labor savings for each point
of automation (20%). Multiply the product of that calculation by the
number of sensors Dot sold last year.
Payback (years) = project investment / annual savings.
◉ If a company were to add capacity in round 6, what round would
the capacity be available to use?. Answer: 7
◉ formula to find net worth. Answer: total assets - total liabilities
◉ Digby had low variable costs and low selling, general and
administrative (SG&A) expenses. What strategy are they likely
pursuing?. Answer: cost leader
,◉ straight line depreciation steps. Answer: purchase cost - salvage
value = $X
1/# years of useful life = %
X% * $X = total
◉ working capital formula. Answer: current assets - current liabilities
◉ positive working capital means that. Answer: the company is able
to pay off its short-term liabilities with its short term assets.
◉ negative working capital means that. Answer: a company currently
is unable to meet its short-term liabilities with its current assets.
◉ Coupon. Answer: A coupon payment on a bond is a periodic
interest payment that the bondholder receives during the time between
when the bond is issued and when it matures.
◉ Current Yield factors. Answer: in the current value of the bond
14.5% X 100/102.61 (Current bond price)
◉ yield. Answer: dividend/ price
◉ P/E. Answer: price / Earnings per share
, ◉ To calculate the investment in automation. Answer: multiply Feat's
capacity by $4 (automation cost per unit of capacity for every level of
automation) for every unit of capacity.
Multiply the product of this calculation by the number of points you
are increasing your automation. $4 * 1 (automation level increase) *
feat capacity
◉ To calculate the annual labor savings from increasing automation
one point. Answer: multiply Feat's labor cost by 10% labor savings
for each point of automation. Multiply the product of that calculation
by the number of sensors Feat sold last year. 10% of labor cost for
Feat (since it is only one level up) * units sold
◉ Payback (years). Answer: project investment / annual savings
◉ asset turnover formula. Answer: divide sales by total assets
An asset turnover of three means there were $3 in sales for every
dollar in assets.
◉ what causes a high asset turnover (3). Answer: low cash
low inventory
plant and equipment nearly depreciated
