COMP-XM SAMPLE BOARD QUERY | 2025/2026
UPDATE | QUESTIONS AND ANSWERS | 100%
CORRECT
Baldwin's EBIT (Earnings Before Interest and Taxes) last year was $21,771,033.
What was Baldwin's net profit?
$223,085
$167,340,889
$11,174,773
$10,701,648 Answer - $11,174,773
Correct! Go to the Front Page of inquirer and look for Baldwin's EBIT.
Your company expects profits to be close to $4,000,000. The Board has
instructed you to increase retained earnings by approximately $2,000,000.
What dividend amount, per share, will you pay this year.
$6.40
$1.80
$5.10
$0.97 Answer - $0.97
Correct! Go to Page 2 of Inquirer. Note your company's shares outstanding
under the Shares column. Take $2M (of your projected profit) and divide it by
your shares outstanding.
, Last year, Chester Company's Cone product had a higher contribution margin
percentage compared to their Creak product. However, Creak contribution
margin (in dollars) is much higher. This is because:
a) Creak's labor and material costs were substantially higher than Cone's.
b) Cone has no inventory.
c) Creak's sales were substantially higher than Cone's. Answer - c) Creak's sales
were substantially higher than Cone's.
Correct! Go to Chester Company's Annual Report in the Inquirer. Turn to the
Income Statement. Notice the difference between Creak's sales and Cone's
sales.
Digby's revenues were $118,965,138 last year. What percentage went to their
marketing budgets?
11.1% (SG&A/Revenue)
6.5% (Promo&Sales/Revenue)
3.2% (Promo/Revenue)
3.3% (Sales/Revenue) Answer - 6.5% (Promo&Sales/Revenue)
Correct! Go to Digby Company's Annual Report in the Inquirer. Turn to the
Income Statement. Find each products' promo and sales budgets and take the
sum of them. Then, take the total and divide it by Digby's total sales.
Consider the cost to separate (terminate) employees at $5,000 per worker
(severance pay, etc.). Consider the cost of training workers at $20 per hour.
Consider the cost of recruiting a higher caliber worker at $3,000. What action
would cost Andrews Company the most?
a) Firing a quarter of its workforce.
b) Paying their newly hired employees an additional $3,000.
c) Training the entire workforce 40 hours per year. Answer - Firing a quarter of
its workforce.
UPDATE | QUESTIONS AND ANSWERS | 100%
CORRECT
Baldwin's EBIT (Earnings Before Interest and Taxes) last year was $21,771,033.
What was Baldwin's net profit?
$223,085
$167,340,889
$11,174,773
$10,701,648 Answer - $11,174,773
Correct! Go to the Front Page of inquirer and look for Baldwin's EBIT.
Your company expects profits to be close to $4,000,000. The Board has
instructed you to increase retained earnings by approximately $2,000,000.
What dividend amount, per share, will you pay this year.
$6.40
$1.80
$5.10
$0.97 Answer - $0.97
Correct! Go to Page 2 of Inquirer. Note your company's shares outstanding
under the Shares column. Take $2M (of your projected profit) and divide it by
your shares outstanding.
, Last year, Chester Company's Cone product had a higher contribution margin
percentage compared to their Creak product. However, Creak contribution
margin (in dollars) is much higher. This is because:
a) Creak's labor and material costs were substantially higher than Cone's.
b) Cone has no inventory.
c) Creak's sales were substantially higher than Cone's. Answer - c) Creak's sales
were substantially higher than Cone's.
Correct! Go to Chester Company's Annual Report in the Inquirer. Turn to the
Income Statement. Notice the difference between Creak's sales and Cone's
sales.
Digby's revenues were $118,965,138 last year. What percentage went to their
marketing budgets?
11.1% (SG&A/Revenue)
6.5% (Promo&Sales/Revenue)
3.2% (Promo/Revenue)
3.3% (Sales/Revenue) Answer - 6.5% (Promo&Sales/Revenue)
Correct! Go to Digby Company's Annual Report in the Inquirer. Turn to the
Income Statement. Find each products' promo and sales budgets and take the
sum of them. Then, take the total and divide it by Digby's total sales.
Consider the cost to separate (terminate) employees at $5,000 per worker
(severance pay, etc.). Consider the cost of training workers at $20 per hour.
Consider the cost of recruiting a higher caliber worker at $3,000. What action
would cost Andrews Company the most?
a) Firing a quarter of its workforce.
b) Paying their newly hired employees an additional $3,000.
c) Training the entire workforce 40 hours per year. Answer - Firing a quarter of
its workforce.
