COMPXM UPDATED EXAM QUESTIONS
AND CORRECT ANSWERS
●● Prices between each round
Answer: Don't change the price!
●● Price for each product
Answer: Nano - max
Elite - max
Core - a few bucks below
Thrift - a few bucks below
●● Automation
Answer: increase automation by 1 point each round in each product
get low end up as high as you can
●● What is your target leverage and how do you get there?
Answer: borrow money until you hit 2.2 and get 60 days of working
capital (will have to pay dividends)
●● To calculate leverage,
,Answer: divide total assets by total equity. This number will represent
the number of dollars of assets owned per dollar invested by equity
holders.
If a company has leverage of four, that means they have $4 in debt for
every $1 in equity.
●● sales and promo budgets (all four rounds)
Answer: For all products
Round 1: 2,000
Round 2: 1,500
Round 3: 1,400
Round 4: 1,400
●● Recruiting hours and spend
Answer: $5,000
80 hours
●● TQM
Answer: $1,500 first round
$1,500 second round
$1,000 third round
,$0 fourth round
●● adding capacity
Answer: a couple hundred each round
●● best date for new products to come out
Answer: June 26-28th
●● forecasting shift capacity
Answer: 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
Answer: 2 rounds
●● MTBF
Answer: Set to maximum amount
, ●● Steps for getting a good finance position
Answer: 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
Answer: 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
Answer: it's for when you have cash leftover in capital investment to
give to your
shareholder.
●● when to retire long-term debt
Answer: it's for when you want to pay your debt early (This usually
decreases your interests expense)
●● Buy/Sell Capacity Strategy
Answer: You want to keep 2 nd Shift Production % between 20% and
50%
AND CORRECT ANSWERS
●● Prices between each round
Answer: Don't change the price!
●● Price for each product
Answer: Nano - max
Elite - max
Core - a few bucks below
Thrift - a few bucks below
●● Automation
Answer: increase automation by 1 point each round in each product
get low end up as high as you can
●● What is your target leverage and how do you get there?
Answer: borrow money until you hit 2.2 and get 60 days of working
capital (will have to pay dividends)
●● To calculate leverage,
,Answer: divide total assets by total equity. This number will represent
the number of dollars of assets owned per dollar invested by equity
holders.
If a company has leverage of four, that means they have $4 in debt for
every $1 in equity.
●● sales and promo budgets (all four rounds)
Answer: For all products
Round 1: 2,000
Round 2: 1,500
Round 3: 1,400
Round 4: 1,400
●● Recruiting hours and spend
Answer: $5,000
80 hours
●● TQM
Answer: $1,500 first round
$1,500 second round
$1,000 third round
,$0 fourth round
●● adding capacity
Answer: a couple hundred each round
●● best date for new products to come out
Answer: June 26-28th
●● forecasting shift capacity
Answer: 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
Answer: 2 rounds
●● MTBF
Answer: Set to maximum amount
, ●● Steps for getting a good finance position
Answer: 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
Answer: 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
Answer: it's for when you have cash leftover in capital investment to
give to your
shareholder.
●● when to retire long-term debt
Answer: it's for when you want to pay your debt early (This usually
decreases your interests expense)
●● Buy/Sell Capacity Strategy
Answer: You want to keep 2 nd Shift Production % between 20% and
50%
