COMP XM ACTUAL EXAM SCRIPT 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ 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.
Correct! Find Andrews current workforce complement on Page 12 of the
Inquirer. The cost to fire a quarter of Andrews Company's workforce is
QUESTIONS WITH ANSWERS GRADED A+
◉ 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.
Correct! Find Andrews current workforce complement on Page 12 of the
Inquirer. The cost to fire a quarter of Andrews Company's workforce is
