COMP XM(2023/2024)| Updated|Verified
Questions and Answers| Well Analyzed
Answers|Rated A+
Segment/Perf/Size - -Thrift +-0.5 -0.5
Core +0.8 -0.8
Nano +0.8 -1.1
Elite +1.1 -0.8
*THE ONLY PRODUCT THAT DOES NOT MOVE, IT'S THE PRODUCT IN LOW
END SEGMENT. LEAVE THIS PRODUCT AT 3.0 AND 17.0*
You want to increase
performance and reduce size as much as you can without the revision date reaching July.
-Prices between each round - -Don't change the price!
-Price for each product - -Nano - max
Elite - max
Core - a few bucks below
Thrift - a few bucks below
-Automation - -increase automation by 1 point each round in each product
get low end up as high as you can
-What is your target leverage and how do you get there? - -borrow money until you hit 2.2
and get 60 days of working capital (will have to pay dividends)
-To calculate leverage, - -divide total assets by total equity. This number will represent the
number of dollars of assets owned per dollar invested by equity holders.
If a company has leverage of four, that means they have $4 in debt for every $1 in equity.
-sales and promo budgets (all four rounds) - -For all products
Round 1: 2,000
Round 2: 1,500
Round 3: 1,400
Round 4: 1,400
-Recruiting hours and spend - -$5,000
80 hours
-TQM - -$1,500 first round
$1,500 second round
$1,000 third round
, $0 fourth round
-adding capacity - -a couple hundred each round
-best date for new products to come out - -June 26-28th
-forecasting shift capacity - -forecast next year's demand directly
This year's potential market share * next year's demand is a good starting point, but then
make judgment adjustments as necessary (e.g. is my product improving, are my
competitors improving, etc.)
use 200% of plant utilization
-you must calculate capacity _____ rounds ahead - -2 rounds
-MTBF - -Set to maximum amount
-Steps for getting a good finance position - -Goals is to get a cash position of $5,000 in
Decembers
Step 1: get as much issue stock as possible
Step 2: get as much issue long-term debt
Step 3: get whatever you need left from borrow
-when to retire stock - -when you have a good cash position and you have some money
left over to purchase stock back from the market
-when to give out dividends - -it's for when you have cash leftover in capital investment to
give to your
shareholder.
-when to retire long-term debt - -it's for when you want to pay your debt early (This
usually decreases your interests expense)
-Buy/Sell Capacity Strategy - -You want to keep 2 nd Shift Production % between 20%
and 50%
If you have less than 20%; you have to sell capacity
If you more than 50% you have to buy capacity
After you make you decisions on production, check how much capital investment you
have; If you have capital investment leftover, try to spend it in Automation or Capacity
If you are spending more than you should, try to sell capacity or not invest as much.
-production schedule formula - -((Units Sales Forecasted) * (1.2) ) - Inventory on Hand)
Questions and Answers| Well Analyzed
Answers|Rated A+
Segment/Perf/Size - -Thrift +-0.5 -0.5
Core +0.8 -0.8
Nano +0.8 -1.1
Elite +1.1 -0.8
*THE ONLY PRODUCT THAT DOES NOT MOVE, IT'S THE PRODUCT IN LOW
END SEGMENT. LEAVE THIS PRODUCT AT 3.0 AND 17.0*
You want to increase
performance and reduce size as much as you can without the revision date reaching July.
-Prices between each round - -Don't change the price!
-Price for each product - -Nano - max
Elite - max
Core - a few bucks below
Thrift - a few bucks below
-Automation - -increase automation by 1 point each round in each product
get low end up as high as you can
-What is your target leverage and how do you get there? - -borrow money until you hit 2.2
and get 60 days of working capital (will have to pay dividends)
-To calculate leverage, - -divide total assets by total equity. This number will represent the
number of dollars of assets owned per dollar invested by equity holders.
If a company has leverage of four, that means they have $4 in debt for every $1 in equity.
-sales and promo budgets (all four rounds) - -For all products
Round 1: 2,000
Round 2: 1,500
Round 3: 1,400
Round 4: 1,400
-Recruiting hours and spend - -$5,000
80 hours
-TQM - -$1,500 first round
$1,500 second round
$1,000 third round
, $0 fourth round
-adding capacity - -a couple hundred each round
-best date for new products to come out - -June 26-28th
-forecasting shift capacity - -forecast next year's demand directly
This year's potential market share * next year's demand is a good starting point, but then
make judgment adjustments as necessary (e.g. is my product improving, are my
competitors improving, etc.)
use 200% of plant utilization
-you must calculate capacity _____ rounds ahead - -2 rounds
-MTBF - -Set to maximum amount
-Steps for getting a good finance position - -Goals is to get a cash position of $5,000 in
Decembers
Step 1: get as much issue stock as possible
Step 2: get as much issue long-term debt
Step 3: get whatever you need left from borrow
-when to retire stock - -when you have a good cash position and you have some money
left over to purchase stock back from the market
-when to give out dividends - -it's for when you have cash leftover in capital investment to
give to your
shareholder.
-when to retire long-term debt - -it's for when you want to pay your debt early (This
usually decreases your interests expense)
-Buy/Sell Capacity Strategy - -You want to keep 2 nd Shift Production % between 20%
and 50%
If you have less than 20%; you have to sell capacity
If you more than 50% you have to buy capacity
After you make you decisions on production, check how much capital investment you
have; If you have capital investment leftover, try to spend it in Automation or Capacity
If you are spending more than you should, try to sell capacity or not invest as much.
-production schedule formula - -((Units Sales Forecasted) * (1.2) ) - Inventory on Hand)
