Globus - Quiz 1 Answers / Globus - Quiz 1-Part 1
1. A camera-maker's price competitiveness in a particular geographic region is determined by
whether
... [Show More] the average wholesale price it camera retailers for its camera models is within $20 of
the regional average wholesale price; all companies with average wholesale prices within $20
of the regional average wholesale price are considered to be price competitive. All other
companies are considered to be charging average wholesale prices that are NOT price
competitive.
whether the average wholesale price for its camera models is within 10% of the lowest-priced
camera brand in the region: a company becomes progressively less price competitive the
greater its average wholesale price is more than 10% above the company with the lowest
average wholesale price.
how favorably the average wholesale price it is charging camera retailers for its models
compares to the lowest average wholesale price being charged by a rival camera-maker in
that same geographic region.
how much its average wholesale price to camera retailers in the region is above or
below the regional average wholesale price.
whether the average wholesale price it is charging camera retailers for its models is at least
10% below the highest-priced camera brand in the region: all companies whose average
wholesale price is more than 10% below the highest-priced camera brand in the region are
considered to be price competitive .
2. Which of the following does NOT accurately describe your company's camera/drone business
and operations?
The company has two buildings for assembling products at its Taiwan site--one for cameras
and one for drones (the drone assembly process also includes assembly of an action-camera
model having features and specifications suitable for use in camera-equipped drones). No
camera models or drone models are assembled in advance, warehoused in company
facilities, and then used to fill incoming orders.
The unmanned aerial view (UAV) drones assembled at the Taiwan plant are sold directly to
buyers at the company's website and to other online retailers of commercial drones in each
geographic region.
The company makes the majority of the needed camera components at facilities close
to its Taiwan assembly plant; newly-produced camera components are transferred by
truck on a just-in-time basis to the company's camera assembly facilities where the
company operates a 250-person assembly line capable of turning out 3,250 cameras
per hour. There is ample space at the camera assembly facility to add two more 250-
person assembly lines should they be needed later to fill incoming buyer orders.
Your company maintains regional facilities in Milan, Italy: Singapore; Sao Paulo. Brazil: and
Dallas. Texas to handle the company's marketing efforts in each of the world's principal
geographic regions, to support the merchandising efforts of area retailers who stock the
company's brand of action-capture cameras and UAV drones, and to process camera/drone
warranty claims (including making needed repairs) originating in their respective geographic
regions.
Once the company's action-capture cameras are assembled and tested. the company ships
them across the world to multi-store chains and online retailers that sell electronics products
and to a wide variety of local retail shops stocking and merchandising (or sometimes renting)
action-capture cameras to their customers.
3. The benefits of current and cumulative expenditures for camera/drone product R&D do NOT
include which of the following?
Providing a pipeline of tested ways to add more features, improve product performance. and
build the company's proficiencies in introducing new and improved camera/drone designs
and models
Reducing the costs of camera/drone parts, components, accessories. and enhancement
features; the size of this benefit varies according to the amount spent
Boosting a company's P/Q ratings (the size of this benefit varies with the current and
cumulative amounts spent and shows up in the P/Q ratings at the beginning of the following
year)
Reducing annual maintenance costs for installed camera/drone workstations (this
benefit show up at the beginning of the following year)
Increasing the productivity of PATs in assembling camera/drone models (because of easier to
assemble product designs); the size of this benefit occurs immediately and varies according
to the amount spent
4. Which one of the following is NOT a factor in determining a company's action camera sales and
market share in a particular geographic region?
The number of camera models in each company's line-up of camera offerings, the length of
the warranty period for each company's camera models. and the amount companies spend
for advertising.
How a company's average wholesale price for the camera models it sells to retailers in the
region compares with the average wholesale prices of the camera models of competing
companies
The extent to which the number of week-long camera sales promotions a company has
annually is above/below the region's all-company average
The amounts by which the company's credit rating and customer service rating are
above/below the regional average
Whether the size of the discounts off the regular average wholesale price a company offers to
retailers during weekly sales promotion campaigns is above/below the regional average
5. Which of the following are components of the compensation package for members of
camera/drone PATs?
Annual base wage, assembly quality incentives ($ per unit assembled divided equally
among PAT members), year-end bonus for perfect attendance, and the dollar-cost of a
PAT member's fringe benefit package
Weekly salary, the cost of a PAT member's fringe benefits package, weekly bonuses for
meeting or beating the PAT's weekly assembly quota. overtime pay, and a monthly allowance
for living expenses
The hourly wage paid each PAT member (which can differ for camera PATs and drone PATs i.
the costs of a PAT member's fringe benefit package, overtime pay, and a weekly allowance
for cost of living expenses
the daily wage paid to each PAT member, the costs of company-paid fringe benefits. a bonus
of $4.00 per camera/drone assembled by each camera/drone PAT (which is subject to
change), and a weekly allowance for living costs
Monthly salary. the cost of a PAT's fringe benefits package, year-end awards of 10 shares of
common stock for perfect attendance. weekly bonuses for meeting or beating the PAT's
weekly assembly quota, and a monthly allowance for living expenses
6. Which of the following currencies are NOT involved in affecting the revenues your company
receives on shipments of action-cameras and UAV drones to buyers in the four geographic
regions where it competes?
U.S. dollars and euros
The Brazilian real and Taiwan dollars
U.S. dollars and Taiwan dollars
The Japanese yen and the Mexican peso
Singapore dollars and euros
7. The Global Community Bank. under terms of its long-term banking agreement with the
company, has agreed to lend the company additional monies should you elect to use debt to
help finance growth and other financial needs; the interest rate the GCB will charge on such
loans is determined is tied to the payback period (1-year, 5-years, 10-years) and to
the company's debt-assets ratio and gross profit margin.
the company's net profit margin.
4 the company's credit rating and the going rates of interest in world financial markets,
how many consecutive years the company has been profitable and its interest coverage ratio.
the company's balance sheet strength.
8. The factors that affect the productivity of both camera PATs and drone PATs include
perfect attendance bonuses, the percentage use of overtime. the percentage of newly-hired
PATs, and how well total compensation levels (not including overtime pay) for camera/drone
PATs compare against the camera/drone all-company averages.
the amount of overtime pay that camera/drone PAT members receive, warranty claim rates,
camera/drone P/C) ratings. and how the total compensation packages (not including overtime
pay) of PAT members compare to the all-company average compensation levels.
the warranty claim rate. the amount of overtime pay each PAT member receives, the total
number of cameras/drones that have to be assembled each year. the amount a company
spends annually per camera/drone PAT on training and productivity-enhancing assembly
methods, and the number of camera/drone components that PAT members have to
assemble.
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