CAPSIM TEST PAPER 2025/2026 QUESTIONS AND
SOLUTION RATED A+
✔✔Marketing - your forecast - ✔✔- in thousands
- represents what you believe you will actually sell
- if left at 0 then the proforma financial report will use the computer's unit sales forecast
- TIP: important to develop a sales forecast for each month
- estimate sales based upon current market conditions, then develop a best/worst case
spread
- worst case goes under the "benchmark prediction" and best case into "your sales
forecast" -- gives you above expected sales with all of your inventory converted to cash
- what you are guaranteeing you will sell this year
- it is encouraged to be a little conservative with this estimate
- to help with this, refer to segment pages in reports and market share report
✔✔Marketing - gross revenue - ✔✔- revenue forecast for each product
- price * unit sales
- assumes inventory will be available to meet demand
- if your "sales forecast" is zero -> the calculation uses the computers "benchmark
prediction"
✔✔Marketing - variable costs - ✔✔= (material cost + labor cost + inventory carry costs)
* unit sales
- if your "sales forecast" is zero -> calculation uses the "benchmark prediction"
calculated by the computer
- the calculation uses the material cost and labor cost it finds in the production
worksheet and assumes there is no leftover inventory to carry
-
✔✔Marketing - contribution margin - ✔✔= gross revenue forecast - variable costs
✔✔Marketing - less promo/sales - ✔✔= contribution margin - promo - sales budgets
✔✔Marketing - revenue - ✔✔- by changing sales forecast revenue projects increase
- is equal to sales forecast minus variable costs and marketing expenses
✔✔Marketing process overall - ✔✔In summary, to market your product you would do
the following: Research the competitive environment in the Courier. Display the
Marketing worksheet. Enter decisions for Price, Promotion and Sales Budgets. Observe
the decision impact upon the benchmark forecast. Develop a worst case estimate for
demand. Enter your worst case estimate for in the sales forecast. Save the decisions.
✔✔Production - ✔✔- how to schedule production for your products and how to buy/sell
assets in the simulation
, - review production analysis before making decisions
- great place to look at what competitors are doing too
- scheduling is in the thousands
- how much production you can schedule for a product depends on capacity
✔✔Production - unit sales forecast - ✔✔is the unit sales forecast brought forward from
the marketing sheet
- should represent the company's worst case scenario
✔✔Production - inventory on hand - ✔✔- number of units sitting in your warehouse at
the start of the year
- inventory on hand + production after adj = number of units you could sell this year
✔✔Production - production schedule - ✔✔- number of units you wish to build this year in
thousands
- you cannot schedule more than twice your first shift capacity
- TIP: remember to factor in inventory on hand when determining how much to produce
for each product this year
✔✔Production - production after adjustments; there are 4 constants - ✔✔1. capacity:
cannot build more than 2x your 1st shift capacity bc there are only 2 shifts
2. complement: if you do not have enough workers, then you may not be able to
produce the production schedule even after working 100% overtime
3. AP: lag policy from mkting spreadsheet; as you extend payables policy, vendors
increasingly withold parts delivieries, making it impossible to meet production schedule
4. time in mkt: new products are constrained by time in the market. for example, if a
product is introduced in october -> you could only product is for 3 months
- TIP: it is ok to produce more units that you are forecasting; number of units produced
should repr the best case scenario; an extra 1-2 months of sales is reasonable
- is what you will actually produce based on production schedule
- inventory on hand + production after adj = MAX number of units you can sell for a
product this year
✔✔Production - 2nd shift production % - ✔✔- complement refers to workforce size ; at
full complement you have no overtime and you have enough workers to complete the
production schedule BUT some workers might be on 2nd shift -> if under complement,
some 1st shift workers must work overtime
- for new products intro'd this year, 2nd shift considers the time that your product will be
in the market EX: product emerges in December, you have 1 month OR 1/12 annual
capacity available for production -> 2nd shift production will be 100%
- it IS possible to not be able to complete your production schedule if are so short
handed you cannot fill the complement in your first shit especially if some lines are
overtime and others are partial or no overtime
- Rules: all lines on 1st shift are staffed, then second shift are added and then as a last
resort, 1st shift are assigned overtime to supplement 2nd shif tto full complement
- workers on 2nd shift are paid time and a half for labor
SOLUTION RATED A+
✔✔Marketing - your forecast - ✔✔- in thousands
- represents what you believe you will actually sell
- if left at 0 then the proforma financial report will use the computer's unit sales forecast
- TIP: important to develop a sales forecast for each month
- estimate sales based upon current market conditions, then develop a best/worst case
spread
- worst case goes under the "benchmark prediction" and best case into "your sales
forecast" -- gives you above expected sales with all of your inventory converted to cash
- what you are guaranteeing you will sell this year
- it is encouraged to be a little conservative with this estimate
- to help with this, refer to segment pages in reports and market share report
✔✔Marketing - gross revenue - ✔✔- revenue forecast for each product
- price * unit sales
- assumes inventory will be available to meet demand
- if your "sales forecast" is zero -> the calculation uses the computers "benchmark
prediction"
✔✔Marketing - variable costs - ✔✔= (material cost + labor cost + inventory carry costs)
* unit sales
- if your "sales forecast" is zero -> calculation uses the "benchmark prediction"
calculated by the computer
- the calculation uses the material cost and labor cost it finds in the production
worksheet and assumes there is no leftover inventory to carry
-
✔✔Marketing - contribution margin - ✔✔= gross revenue forecast - variable costs
✔✔Marketing - less promo/sales - ✔✔= contribution margin - promo - sales budgets
✔✔Marketing - revenue - ✔✔- by changing sales forecast revenue projects increase
- is equal to sales forecast minus variable costs and marketing expenses
✔✔Marketing process overall - ✔✔In summary, to market your product you would do
the following: Research the competitive environment in the Courier. Display the
Marketing worksheet. Enter decisions for Price, Promotion and Sales Budgets. Observe
the decision impact upon the benchmark forecast. Develop a worst case estimate for
demand. Enter your worst case estimate for in the sales forecast. Save the decisions.
✔✔Production - ✔✔- how to schedule production for your products and how to buy/sell
assets in the simulation
, - review production analysis before making decisions
- great place to look at what competitors are doing too
- scheduling is in the thousands
- how much production you can schedule for a product depends on capacity
✔✔Production - unit sales forecast - ✔✔is the unit sales forecast brought forward from
the marketing sheet
- should represent the company's worst case scenario
✔✔Production - inventory on hand - ✔✔- number of units sitting in your warehouse at
the start of the year
- inventory on hand + production after adj = number of units you could sell this year
✔✔Production - production schedule - ✔✔- number of units you wish to build this year in
thousands
- you cannot schedule more than twice your first shift capacity
- TIP: remember to factor in inventory on hand when determining how much to produce
for each product this year
✔✔Production - production after adjustments; there are 4 constants - ✔✔1. capacity:
cannot build more than 2x your 1st shift capacity bc there are only 2 shifts
2. complement: if you do not have enough workers, then you may not be able to
produce the production schedule even after working 100% overtime
3. AP: lag policy from mkting spreadsheet; as you extend payables policy, vendors
increasingly withold parts delivieries, making it impossible to meet production schedule
4. time in mkt: new products are constrained by time in the market. for example, if a
product is introduced in october -> you could only product is for 3 months
- TIP: it is ok to produce more units that you are forecasting; number of units produced
should repr the best case scenario; an extra 1-2 months of sales is reasonable
- is what you will actually produce based on production schedule
- inventory on hand + production after adj = MAX number of units you can sell for a
product this year
✔✔Production - 2nd shift production % - ✔✔- complement refers to workforce size ; at
full complement you have no overtime and you have enough workers to complete the
production schedule BUT some workers might be on 2nd shift -> if under complement,
some 1st shift workers must work overtime
- for new products intro'd this year, 2nd shift considers the time that your product will be
in the market EX: product emerges in December, you have 1 month OR 1/12 annual
capacity available for production -> 2nd shift production will be 100%
- it IS possible to not be able to complete your production schedule if are so short
handed you cannot fill the complement in your first shit especially if some lines are
overtime and others are partial or no overtime
- Rules: all lines on 1st shift are staffed, then second shift are added and then as a last
resort, 1st shift are assigned overtime to supplement 2nd shif tto full complement
- workers on 2nd shift are paid time and a half for labor
