Daze product remains the same

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Reference no: EM13532700

1. Assuming Digby's current market share for its Daze product remains the same, how many units of Daze should Digby expect to sell in the primary segment for the upcoming year?
Select: 1
1503 units
1787 units
1653 units
1639 units

2. Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in this and in all future rounds. (Refer to the TQM Initiative worksheet in the CompXM Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,508,343. Assuming similar sales next year, the 3.0% increase in demand will provide $4,905,250 of additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will add $1,672,690 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels. How long will it take to achieve payback on the initial $2,000,000 TQM investment, rounded to the nearest month?
Select: 1
10 months
TQM investment will not have a significant financial impact
14 months
5 months

3. Digby's product manager is considering lowering the price of the Dixie product by $2.50 and wants to know what the impact will be on the product's contribution margin. Assuming no inventory carry costs, what will Dixie's contribution margin be if the price is lowered?
Select: 1
34.00%
30.00%
32.30%
31.58%

Reference no: EM13532700

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