QUESTIONS AND EXPERT VERIFIED
ANSWERS HIGH SCORE GUIDE
◉ Deal is a product of the Digby company. Digby's sales forecast for
Deal is 1853 units. Digby wants to have an extra 10% of units on
hand above and beyond their forecast in case sales are better than
expected. (They would risk the possibility of excess inventory
carrying charges rather than risk lost profits on a stock out.) Taking
current inventory into account, what will Deal's Production After
Adjustment have to be in order to have a 10% reserve of units
available for sale?. Answer: Production Units = Sales x (1 + Reserve
Percentage)
1853 x (1+ 10%)
2038
◉ Chester's Elite product Cell has an awareness of 72%. Chester's
Cell product manager for the Elite segment is determined to have
more awareness for Cell than Andrews' Elite product Art. She knows
that the first $1M in promotion generates 22% new awareness, the
second million adds 23% more and the third million adds another
5%. She also knows one-third of Cell's existing awareness is lost