Quiz 2 Bus Pol

If a company spends $80 million to build facility space sufficient to hold 5 million pairs of footwear making equipment at a site in Latin America, then the company's annual depreciation costs for this facility space will e

$8,000,000

Given the following Year 12 balance sheet data for a footwear company: Based on the above figures and the definition of the debt asset ratio presented in the help section for P.5 of the Footwear Industry Report, the company's debt'assets ratio (rounded to 2 decimal places)

0.48 The debt-to-assets ratio is defined as total liabilities divided by total assets—both numbers are shown on the company's balance sheet. A debt-to-assets ratio of .20 to .35 is considered "good". 200,000/420,000=0.476

Assume a company's Income Statement for Year12 is as follows: Based on the above income statement and assuming the company has 20 million shares of common stock outstanding, the company's operating profit margin and EPS were

10.38% and $1.58

Assume a company's Income Statement for Year12 is as follows: Based on the above income statement data and the formula for calculating the interest coverage ratio described in the Help section for p.5 of the Footwear Industry report, the company's interest coverage ratio is

5.00 operating profit/interest income(expense) 60,000/12,000=5.00

Which of the following statements about striving to reduce labor costs per pair produced at each of the company's production facilities is true

??? Comanies producing branded footwear with a 7star or higher S/Q rating are very unlikely to achieve labor costs per pair produced that are below the industry average ina given region whereas companies producing branded footwear with an S/Q rating no higher than 4 stars or less in that same geographic region are virtually assured of having labor costs per pair that are below the region's industry average

Based on the industry-low, industry-average, and industry-high values for the benchmarked data on p.7 of the FIR, which one of the following is the strongest and most valid signal that one or more elements of a company's costs are too high relative to those of rival companies?

???? The company's distribution and warehouse costs per pair available in the Europe Africa region were $1.00 above the industry average i looked through the FIR and this was the one that made most sense for my company

The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution warehouse in Europe Africa is to

Build a plant in EuropeAfrica and then expand it as may be needed so that the company has sufficient capacity to supply all......

The most/essential results from the latest decision round that company managers need to review/study in order to guide their strategic moves and decisions to improve their company's overall performance and competitiveness vis-a-vis rivals in the upcoming decision round are

Comparative competitive efforts section of the competitive intelligence report for each of the four geographic regions

Which one of the following is NOT a way to improve the S/Q rating of branded pairs produced at a particular production location?

Increasing the number of models/styles produced

Which one of the following actions is guaranteed to result in lower labor costs per pair produced at one of your company's production facilities?

Increasing total employee compensation by 4% and realizing a 6% increase in production worker productivity

A company's management team should compete seriously against rivals to win a privatelabel footwear contract in a particular geographic region when

It concludes that the company more than enough production capacity to produce the needed pairs of branded footwear, and based on its projections, determines that the Company's profitability and be increased by competing for and winning private-label contracts.

Which one of the following is NOT a way to grow a company's sales volume in the internet segment in the Europe-Africa Region?

Win sufficient celebrity endorsement contacts to achieve celebrity appeal ratings that are higher than the industry average in Europe-Africa REgion

Given the folowing data from a Comparative Efforts page in the CIR, based onthe data for you company, which of the following statements is false

Your company had a competitive advantage in delivering orders for branded footwear to retailers

Given the following data from a recent Comparative Efforts page in the CIR: Based on the above data for your company, which of the following statements is false?

Your company's percentage competitive advantage and disadvantages on the 8 competitive factors affecting internal sales and market share resulted in a net overall....

The industry-low, industry-average, and industry-high cost benchmarking data on pp. 6-7 of each issue of the Footwear Industry Report

aid managers in assessing whether their company's costs and/or operating profits for the benchmarked items are adequately competitive. When such is not the case, the company's managers should promptly address how best to correct the high-cost or low-profit problem(s).

If a management team wishes to boost the company's stock price, then it should consider

boosting the company's dividend by $0.50 or more every year, increasing the company's retained earnings, and paying off all long-term debt as rapitdly as possible in order to achieve an A+ credit rating

Pursuing a strategy of social responsibility and corporate citizenship

helps increase a company's image rating, provided the company spends a meaningful amount on socially responsible activities and such spending is sustained over a multi-year period

In the private-label operating benchmarks section on p. 7 of each issue of the FIR, the industry-low, industry-average, and the industry-high benchmarks for the margins over direct costs should be interpreted as representing

how much sellers of private label footwear received over and above the costs per pair sold; these margins, if positive, serve to improve a seller's operating profit in the designated region

A company opting to boost its sales of branded footwear by offering buyers in one or more regions 500 models/styles to choose from should definitely consider

instituting production improvement option B at all production locations where 500 models are going to be produced.

IF a company is pursuing a strategy to produce branded footwear at a low total production cost relative to rival companies, then it should regularly review

the production cost benchmarking data on p. 6 of each issue of the Footwear Industry Report to see if its efforts to achieve low total production costs per branded pair have been more/less successful than other companies pursuing much the same outcome