COMP XM ACTUAL EXAM PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ Investing $1,500,000 in TQM's Channel Support Systems initiative
will at a minimum increase demand for your products 1.7% 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 $163,189,230. Assuming similar sales
next year, the 1.7% increase in demand will provide $2,774,217 of
additional revenue. With the overall contribution margin of 34.1%, after
direct costs this revenue will add $946,008 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
$1,500,000 TQM investment, rounded to the nearest month? Answer: 9
months
◉ Bam's product manager is under pressure to increase market share,
but is uncertain about how to make the product more competitive. The
product is reasonably well-positioned in the Thrift segment and enjoys
relatively high awareness and accessibility. Which of the following
would most likely result in a quick increase in market share? Answer:
Lower the unit selling price to the bottom limit of the segment price
range
, ◉ Looking forward to next year, if Baldwins current cash amount is
$20,132 (000) and cash flows from operations next period are
unchanged from this period and Baldwin takes ONLY the following
actions relating to cash flows from investing and financing activities:
Issues $2,000 (000) of long-term debt
Pays $4,000 (000) in dividends
Retires $10,000 (000) in debt
Which of the following activities will expose Baldwin to the most risk of
needing an emergency loan? Answer: Purchases assets at a cost of
$15,000 (000)
◉ According to information found on the production analysis page of
the Inquirer, Chester sold 1126 units of Cat in the current year.
Assuming that Cat maintains a constant market share, all the units of Cat
are sold in the Nano market segment and the growth rate remains
constant, how many years will it be before Cat will not be able to meet
future demand unless the company adds production capacity? Exclude
any existing inventory. Answer: 1 year
◉ Which description best fits Andrews? For clarity:
QUESTIONS WITH ANSWERS GRADED A+
◉ Investing $1,500,000 in TQM's Channel Support Systems initiative
will at a minimum increase demand for your products 1.7% 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 $163,189,230. Assuming similar sales
next year, the 1.7% increase in demand will provide $2,774,217 of
additional revenue. With the overall contribution margin of 34.1%, after
direct costs this revenue will add $946,008 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
$1,500,000 TQM investment, rounded to the nearest month? Answer: 9
months
◉ Bam's product manager is under pressure to increase market share,
but is uncertain about how to make the product more competitive. The
product is reasonably well-positioned in the Thrift segment and enjoys
relatively high awareness and accessibility. Which of the following
would most likely result in a quick increase in market share? Answer:
Lower the unit selling price to the bottom limit of the segment price
range
, ◉ Looking forward to next year, if Baldwins current cash amount is
$20,132 (000) and cash flows from operations next period are
unchanged from this period and Baldwin takes ONLY the following
actions relating to cash flows from investing and financing activities:
Issues $2,000 (000) of long-term debt
Pays $4,000 (000) in dividends
Retires $10,000 (000) in debt
Which of the following activities will expose Baldwin to the most risk of
needing an emergency loan? Answer: Purchases assets at a cost of
$15,000 (000)
◉ According to information found on the production analysis page of
the Inquirer, Chester sold 1126 units of Cat in the current year.
Assuming that Cat maintains a constant market share, all the units of Cat
are sold in the Nano market segment and the growth rate remains
constant, how many years will it be before Cat will not be able to meet
future demand unless the company adds production capacity? Exclude
any existing inventory. Answer: 1 year
◉ Which description best fits Andrews? For clarity:
