Please use the following link to access financial data for the problems http://w
ID: 2647266 • Letter: P
Question
Please use the following link to access financial data for the problems
http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1152614&simid=C59559&round=4&Report=CapCourier|AnnReport
Questions:
1.Demand is created through meeting customer buying criteria, credit terms, awareness (promotion) and accessibility (distribution). According to the Thrift segment's customers, which of these products was the most competitive at the end of last year?
Select: 1
Dell
Cake
Cedar
Adam
2.Baldwin currently has $17,478 (000) in cash and management has decided to issue stocks and bonds worth an additional $8,000 (000). Assuming that cash from operations will be the same for each of the following activities, which activity exposes this company to the most risk of being issued an emergency loan?
Select: 1
Liquidate the entire inventory
Purchasing $18,000 (000) worth of plant and equipment
Retiring the oldest bond
A $5 dividend
3.Select all of the following statements that are true four years from now, in the year 2018.
Select: 2
The Nano segment will demand 5,411 thousand units
The Elite segment will demand 5,878 thousand units
The Core segment will demand 9,785 thousand units
The Thrift segment will demand 7,751 thousand units
4.A productivity index of 110% means that a company
Explanation / Answer
1.Demand is created through meeting customer buying criteria, credit terms, awareness (promotion) and accessibility (distribution). According to the Thrift segment's customers, which of these products was the most competitive at the end of last year
Solution - As the Data does not give information of credit terms we are taking the other three factors buying criteria, awareness (promotion) and accessibility (distribution) in consideration with 1/3 Weightage to each of them and for buying criteria already the weightage is given -
Here what we do is find the Variation from the Ideal in Percentages and after giving weightage to the variations we find lowest variation percentage which is the most competitive
Lets find the Variation in the buying Criteria first for which we have the below details given
Thrift Customer Buying Criteria
So below is the variation calculation for Buying Criteria and it shows cake is most competitive however we need to see how other two factors perform too
Below is the awareness (promotion) and accessibility (distribution) variation
Now that we have all the three variations in % we will find the overall variation by providing equal weightage to each one of them and so we have below details
Thus our annswer is Adam with least varaince & therefore most competitive
Thrift Customer Buying Criteria
Expectations Importance 1. Price $14.00 - 26.00 55% 2. Reliability MTBF 14000-20000 20% 3. Ideal Position Pfmn 6.5 Size 13.7 15% 4. Age Ideal Age = 3.0 10%