MAN 4752 CompXM
1. How do you increase your stock price? (3)
ANS 1. Increase EPS
2. Retire stock
3. Issue a dividend
2. How do you find EPS?
ANS Net Profit / # shares outstanding
3. What is the prime rate?
ANS The interest rate commercial banks charge their most credit
worthy customers.
4. How do you find the number of months of inventory you have left? (3)
What should be your ideal inventory supply?
ANS 1. Inventory (balance sheet) / Avg. monthly sales
2. (Inventory / Sales) * 12
,3. (Unit Inventory / Unit Sales) *
12 [Average monthly sales =
sales / 12 ]
Around 3 months
5. What is included in SG&A expenses? (4)
ANS 1. R & D
2. Promotion budget
3. Sales budget
4. Administrative expenses
6. Under which strategy do firm's spend more on SG&A expenses as a
per- centage of sales?
ANS Differentiators
7. How do you find the amount of units a firm missed selling for a
particular product? (2 steps)
ANS 1. Potential market share for specific product - total actual market
share from
2. Multiply the result by the total potential market share for all segments
8. How do you find the amount a firm's EBIT would have increased if they
,would not have stocked out of a specific product? (3 steps)
ANS 1. Find the amount of units the product missed selling
2. Multiply the result by the product's price
3. Multiply the result of #2 by the product's CM
9. An assembly line with higher automation usually has what? (4)
ANS 1. Fewer workers
2. Lower labor costs
3. Higher profits
4. Longer R&D revisions
, 10. What does is mean to have an automation of
1? What about 7?
What does each level represent? (2)
ANS level of 1
- 1 machine and 10 workers
level of 7
- 7 machines and 4 workers
Each additional unit = 10% decrease in labor costs
Each additional unit = ($4 * capacity) COST OF AUTOMATION
11.What are the aspects considered under a product's "product" factor? (3)
ANS 1. Reliability
2. Position (performance and size)
3. Age
12.What are the aspects considered under a product's "place" factor?
ANS Pro- motion budget
13. What are the aspects considered under a product's "promotion" factor?
1. How do you increase your stock price? (3)
ANS 1. Increase EPS
2. Retire stock
3. Issue a dividend
2. How do you find EPS?
ANS Net Profit / # shares outstanding
3. What is the prime rate?
ANS The interest rate commercial banks charge their most credit
worthy customers.
4. How do you find the number of months of inventory you have left? (3)
What should be your ideal inventory supply?
ANS 1. Inventory (balance sheet) / Avg. monthly sales
2. (Inventory / Sales) * 12
,3. (Unit Inventory / Unit Sales) *
12 [Average monthly sales =
sales / 12 ]
Around 3 months
5. What is included in SG&A expenses? (4)
ANS 1. R & D
2. Promotion budget
3. Sales budget
4. Administrative expenses
6. Under which strategy do firm's spend more on SG&A expenses as a
per- centage of sales?
ANS Differentiators
7. How do you find the amount of units a firm missed selling for a
particular product? (2 steps)
ANS 1. Potential market share for specific product - total actual market
share from
2. Multiply the result by the total potential market share for all segments
8. How do you find the amount a firm's EBIT would have increased if they
,would not have stocked out of a specific product? (3 steps)
ANS 1. Find the amount of units the product missed selling
2. Multiply the result by the product's price
3. Multiply the result of #2 by the product's CM
9. An assembly line with higher automation usually has what? (4)
ANS 1. Fewer workers
2. Lower labor costs
3. Higher profits
4. Longer R&D revisions
, 10. What does is mean to have an automation of
1? What about 7?
What does each level represent? (2)
ANS level of 1
- 1 machine and 10 workers
level of 7
- 7 machines and 4 workers
Each additional unit = 10% decrease in labor costs
Each additional unit = ($4 * capacity) COST OF AUTOMATION
11.What are the aspects considered under a product's "product" factor? (3)
ANS 1. Reliability
2. Position (performance and size)
3. Age
12.What are the aspects considered under a product's "place" factor?
ANS Pro- motion budget
13. What are the aspects considered under a product's "promotion" factor?
