COMP-XM SIMULATION EXAM QUESTIONS
AND ANSWERS NEWLY MODIFIED 2025/2026
NEW UPDATE
sales and promo budgets (all four rounds) --ANSWER--For all products
Round 1: 2,000
Round 2: 1,500
Round 3: 1,400
Round 4: 1,400
Recruiting hours and spend --ANSWER--$5,000
80 hours
TQM --ANSWER--$1,500 first round
$1,500 second round
$1,000 third round
$0 fourth round
adding capacity --ANSWER--a couple hundred each round
Page 1 of 36
,best date for new products to come out --ANSWER--June 26-28th
forecasting shift capacity --ANSWER--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 --ANSWER--2 rounds
MTBF --ANSWER--Set to maximum amount
Segment/Perf/Size --ANSWER--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*
Page 2 of 36
,You want to increase
performance and reduce size as much as you can without the revision date
reaching July.
Prices between each round --ANSWER--Don't change the price!
Price for each product --ANSWER--Nano - max
Elite - max
Core - a few bucks below
Thrift - a few bucks below
Automation --ANSWER--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? --ANSWER--borrow
money until you hit 2.2 and get 60 days of working capital (will have to pay
dividends)
To calculate leverage, --ANSWER--divide total assets by total equity. This
number will represent the number of dollars of assets owned per dollar invested
by equity holders.
Page 3 of 36
, If a company has leverage of four, that means they have $4 in debt for every $1
in equity.
Steps for getting a good finance position --ANSWER--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 --ANSWER--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 --ANSWER--it's for when you have cash leftover in
capital investment to give to your
shareholder.
when to retire long-term debt --ANSWER--it's for when you want to pay your
debt early (This usually decreases your interests expense)
Buy/Sell Capacity Strategy --ANSWER--You want to keep 2 nd Shift
Production % between 20% and 50%
Page 4 of 36
AND ANSWERS NEWLY MODIFIED 2025/2026
NEW UPDATE
sales and promo budgets (all four rounds) --ANSWER--For all products
Round 1: 2,000
Round 2: 1,500
Round 3: 1,400
Round 4: 1,400
Recruiting hours and spend --ANSWER--$5,000
80 hours
TQM --ANSWER--$1,500 first round
$1,500 second round
$1,000 third round
$0 fourth round
adding capacity --ANSWER--a couple hundred each round
Page 1 of 36
,best date for new products to come out --ANSWER--June 26-28th
forecasting shift capacity --ANSWER--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 --ANSWER--2 rounds
MTBF --ANSWER--Set to maximum amount
Segment/Perf/Size --ANSWER--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*
Page 2 of 36
,You want to increase
performance and reduce size as much as you can without the revision date
reaching July.
Prices between each round --ANSWER--Don't change the price!
Price for each product --ANSWER--Nano - max
Elite - max
Core - a few bucks below
Thrift - a few bucks below
Automation --ANSWER--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? --ANSWER--borrow
money until you hit 2.2 and get 60 days of working capital (will have to pay
dividends)
To calculate leverage, --ANSWER--divide total assets by total equity. This
number will represent the number of dollars of assets owned per dollar invested
by equity holders.
Page 3 of 36
, If a company has leverage of four, that means they have $4 in debt for every $1
in equity.
Steps for getting a good finance position --ANSWER--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 --ANSWER--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 --ANSWER--it's for when you have cash leftover in
capital investment to give to your
shareholder.
when to retire long-term debt --ANSWER--it's for when you want to pay your
debt early (This usually decreases your interests expense)
Buy/Sell Capacity Strategy --ANSWER--You want to keep 2 nd Shift
Production % between 20% and 50%
Page 4 of 36
