COMP XM ACTUAL EXAM QUESTIONS WITH ANSWERS
2025/2026 GRADED A+
forecasting shift capacity - forecast next year's demand directly
This year's potential market share * next year's demand is a good starting point, but
then make judgment adjustments as necessary (e.g. is my product improving, are my
competitors improving, etc.)
use 200% of plant utilization
you must calculate capacity _____ rounds ahead - 2 rounds
MTBF - Set to maximum amount
Steps for getting a good finance position - Goals is to get a cash position of $5,000 in
Decembers
Step 1: get as much issue stock as possible
Step 2: get as much issue long-term debt
Step 3: get whatever you need left from borrow
when to retire stock - when you have a good cash position and you have some money
left over to purchase stock back from the market
when to give out dividends - it's for when you have cash leftover in capital investment to
give to your
shareholder.
when to retire long-term debt - it's for when you want to pay your debt early (This
usually decreases your interests expense)
Buy/Sell Capacity Strategy - You want to keep 2 nd Shift Production % between 20%
and 50%
If you have less than 20%; you have to sell capacity
If you more than 50% you have to buy capacity
After you make you decisions on production, check how much capital investment you
have; If you have capital investment leftover, try to spend it in Automation or Capacity
If you are spending more than you should, try to sell capacity or not invest as much.
production schedule formula - ((Units Sales Forecasted) * (1.2) ) - Inventory on Hand)
, forecasting strategy - From the Market Share page in the Capstone Courier, take your
last year's market
share and multiple it by the next year demand of each segment.
To calculate Next Year Demand, you take current demand and multiple it by the
growth rate
Multiple your Market Share by Next Year's Demand
Finding the profit margin - Look at "ROS" under the Selected Financial Statistics
A +/- ROS is directly correlated to - a +/- ROA
ex) negative ROS means you will have a negative ROA
more on ROA - Return on assets is an efficiency ratio. The ratio answers the question,
"How good is the company at producing wealth with our assets?"
It compares the profits generated by the company with the asset base.
To calculate ROA, - divide profit by assets. ROA is also the product of multiplying the
ROS by the AT (asset turnover).
Which three segments are the new products most likely compete in the following year
year? - high end
performance size
The industry best practice is for leverage to be in the range of - 1.8 to 2.8.
1.8 breakdown: 56% equity, 44% debt
2.8 breakdown: 36% equity, 64% debt
what's included in the contribution margin (4) - sales - labor exp - material exp - inv
carry costs = contribution margin
Name the four ways you can increase your contribution margin - Reduce cost of
materials
Lower MTBF
Increase the product price
Increase automation
A profitable product should not have more than about X% of their sales consumed by
inventory carrying costs (about X months of inventory). - 3%
3 months
2025/2026 GRADED A+
forecasting shift capacity - forecast next year's demand directly
This year's potential market share * next year's demand is a good starting point, but
then make judgment adjustments as necessary (e.g. is my product improving, are my
competitors improving, etc.)
use 200% of plant utilization
you must calculate capacity _____ rounds ahead - 2 rounds
MTBF - Set to maximum amount
Steps for getting a good finance position - Goals is to get a cash position of $5,000 in
Decembers
Step 1: get as much issue stock as possible
Step 2: get as much issue long-term debt
Step 3: get whatever you need left from borrow
when to retire stock - when you have a good cash position and you have some money
left over to purchase stock back from the market
when to give out dividends - it's for when you have cash leftover in capital investment to
give to your
shareholder.
when to retire long-term debt - it's for when you want to pay your debt early (This
usually decreases your interests expense)
Buy/Sell Capacity Strategy - You want to keep 2 nd Shift Production % between 20%
and 50%
If you have less than 20%; you have to sell capacity
If you more than 50% you have to buy capacity
After you make you decisions on production, check how much capital investment you
have; If you have capital investment leftover, try to spend it in Automation or Capacity
If you are spending more than you should, try to sell capacity or not invest as much.
production schedule formula - ((Units Sales Forecasted) * (1.2) ) - Inventory on Hand)
, forecasting strategy - From the Market Share page in the Capstone Courier, take your
last year's market
share and multiple it by the next year demand of each segment.
To calculate Next Year Demand, you take current demand and multiple it by the
growth rate
Multiple your Market Share by Next Year's Demand
Finding the profit margin - Look at "ROS" under the Selected Financial Statistics
A +/- ROS is directly correlated to - a +/- ROA
ex) negative ROS means you will have a negative ROA
more on ROA - Return on assets is an efficiency ratio. The ratio answers the question,
"How good is the company at producing wealth with our assets?"
It compares the profits generated by the company with the asset base.
To calculate ROA, - divide profit by assets. ROA is also the product of multiplying the
ROS by the AT (asset turnover).
Which three segments are the new products most likely compete in the following year
year? - high end
performance size
The industry best practice is for leverage to be in the range of - 1.8 to 2.8.
1.8 breakdown: 56% equity, 44% debt
2.8 breakdown: 36% equity, 64% debt
what's included in the contribution margin (4) - sales - labor exp - material exp - inv
carry costs = contribution margin
Name the four ways you can increase your contribution margin - Reduce cost of
materials
Lower MTBF
Increase the product price
Increase automation
A profitable product should not have more than about X% of their sales consumed by
inventory carrying costs (about X months of inventory). - 3%
3 months
