QUESTIONS WITH CORRECT ANSWERS
GRADED A+
• Which of the following actions is LEAST likely to increase labor
productivity by an amount that is large enough to result in lower labor costs
per pair produced at a particular plant?.
Answer: · Increasing worker base pay by the allowed maximum of 15%
each and every year until the company's base pay compensation per
employee exceeds the total compensation per employee ($/year) of all other
companies in the industry
• Q: Managerial value of regularly consulting data in Year-to-Year
Performance Highlights report:.
Answer: Review the trends in the branded production outcomes in each
region and the trends in the pairs sold, market shares, and operating profit
per pair in each region and then pursue corrective actions where needed in
the upcoming decision round.
• It makes good economic sense for company managers to consider investing
$3.5 million per million pairs of capacity for a plant facilities upgrade that
will boost labor productivity by 25%..
Answer: · At a plant that currently has labor productivity of 3,200 pairs per
worker and total employee compensation of $20,000 annually because the
upgrade will cause labor costs per pair produced to decline from $6.25 to
$5.00 o Labor cost per pair = Compensation/Productivity o Labor cost per
pair initially = 20,000/3,200 = $6.25 o After increase in productivity =
20,000/ (3,200*1.25) = $5.00 o Reduction = 6.25 * 5.00 = $1.25
• Q: Valid signal that company's costs are likely too high relative to rivals:.
Answer: Your company's total compensation package for production
workers is about 10% above the industry average in those geographic
regions where your company has production operations.
, • Q: Valid reasons why a company should definitely open a new production
facility in Latin America include....
Answer: A: being able to avoid paying import tariffs on footwear produced
and sold in Latin America; moreover, the freight costs on pairs shipped from
a production facility in Latin America to the Latin American distribution
center are lower than the freight costs on pairs shipped from production
facilities outside Latin America to the Latin American distribution center.
• Company managers should give strong consideration to bidding for private
label contracts in one or more geographic regions in the upcoming decision
round when.
Answer: · They expect to have idle production capacity at one or more
plants after producing all the branded pairs needed to meet anticipated
demand in the upcoming year
• Which of the following are affective ways for manager to try to boost a
company's stock price?.
Answer: · Increase the company's dividend payment to shareholders, each
year by at least $ per share, repurchase shares of common stock, and make
every effort to achieve annual increases in earnings per share.
• Generally, a board member who is a source of information about a firm's
day-to-day activities is classified as a(an) ____ director..
Answer: inside
• What does help a company's social responsibility strategy and results in a
higher image rating.
Answer: · Using environmentally friendly or 'Green' materials in producing
footwear at the company's plants · Using recycled packaging materials to
box each pair of athletic footwear at the company's distribution centers ·
Making donations to charities and charitable causes · Investing to improve
energy efficiency and the use of renewable sources at company facilities.
• Q: Time Series Competitive Efforts section of CIR is particularly useful
for:.