Capsim Preview Test Questions |Latest Release

Capsim Preview Test Questions |Latest Release| All of the following are important considerations before lowering a product selling price EXCEPT: Does our company have enough contribution margin to cover costs for that product? As a low-cost producer, we are expected to have the lowest prices? Can we afford to match or beat a competitor's price? Is the customer segment price sensitive, e.g., price is an important buying criterion? *Ans* cost producer, we are expected to have the lowest prices? As a low All of the following are important to consider for next year's forecast calculations of a product EXCEPT: Capstone Courier December Survey Score. Your company's R&D product changes that will be released in the upcoming year. The Benchmark Prediction amount listed on the Marketing Page of Capsim. The positioning & pricing of competitive products. *Ans* The Benchmark Prediction amount listed on the Marketing Page of Capsim. All of the following methods will help to reposition a current product to a new customer segment EXCEPT: R&D the product closer to the new segment's performance & size requirements. Lower the product's price to fit the Low-End segment. Let a newer product age by doing no R&D for a couple years. Lower the MTBF to the bottom of the accepted range. *Ans* accepted range. Lower the MTBF to the bottom of the All of the following statements are true regarding the Promotion or the Accessibility Budgets, EXCEPT? Having a higher promotion budget early on will build brand awareness quickly to 100%. Budgets should be as high as possible every year. Once awareness reaches 100% this can be maintained at a cost of $1,400 (000). Accessibility is stronger with more than one product in segment. *Ans* possible every year. Budgets should be as high as All of the following statements regarding company finances are correct EXCEPT: Company cash flow shortages within the year are covered by Big Al at a premium cost. A profitable company may still have cash shortfalls due to the timing of revenue & expenses. Long term debt should be paid off as quickly as possible. Selling stock shares is an appropriate method to raise capital for the company. *Ans* should be paid off as quickly as possible. Long term debt Calculate the expected 2025 market share percentage for product Daze using the following data:(Rounded up to nearest whole percent) Product Name 2024 Market Share and Dec. Cust. Survey Score Baker 28% 30 Able 24% 24 Daze 20% 15 Cake 18% 21 3% 15% 17% 20% *Ans* 17% Creating a brand-new product requires your company to do all of the following when the product is created EXCEPT? Buy capacity for the new product Set an automation rating for the new product Budget promotion & accessibility money for the new product Have funds (either through borrowing debt or selling stocks) to pay for the invention of the new product. *Ans* Budget promotion & accessibility money for the new product If needed, your company can raise capital for expenses such as R&D costs, buying capacity, or increasing automation levels by: Borrowing long term debt Issuing & selling new shares of stock Retiring shares of stock A or B will raise capital for long term investments. *Ans* investments. A or B will raise capital for long term If the Capstone Courier shows our plant utilization over 120%, all are correct EXCEPT? Our automation levels are too low. Our company is efficiently using 1st AND some 2nd shift employees. Our company may need to consider buying capacity soon. Our company is effectively using assets and limiting depreciation expenses. *Ans* levels are too low.