Module 2

Assuming no additional product promotion, what percent of customers, reached through last year's marketing campaign will carry over into the current year?

67%

When a segment's product supply exceeds demand, how much appeal, to the customer, will a product priced $1 above or below the segment price range lose?

20%

Based on the example in the Team Member Guide, what additional awareness does a promotion budget of $1,500,000 buy?

36%

What is a market segment?

A group of customers with similar purchasing concerns

What's the measure for product reliability?

How long a product is expected to function

Which financial obligation is best satisfied with Current Debt?

Salary increases All of the above

A firm's bond rating slips by 1 category for each ______ in interest

additional 0.5%

An increase in promotional budgets has:

diminishing returns become apparent at $2 million

The relationship between promotion and sales budget and sensor sales is generally

a direct one.

Which financial obligation is best satisfied with Bond Issues?

Paying for increased production capacity

Which of the following are two of the market segments found in the Capstone simulation?

Performance and Low End

How much do segment prices fall each year?

Prices remain constant in each segment(wrong) .50(right)

What is the minimum amount of time that it takes to invent a new sensor?

1 year

If your short-term interest rate (the rate on your current debt is 12.1%, then your bond rate (the rate on your long-term debt) is:

1.4% higher than the current debt rate, or 13.5%

If the previous year you reached 100% customer awareness in your company, this year what will you need to do to maintain this level?

I would scale back promotional expenditures to about $1,400,000 to maintain awareness

When the competition rounds begin, each team (or individual) will take the reins of

a $100 million company with 5 products

If your company has a sales budget of $3 million and drops it to zero, in that year

accessibility will drop by one third

How can assembly lines double their capacity?

add a second shift

The promotion budget affects:

awareness

In a seller's market even pathetic products are snapped up by desperate buyers because

first shift capacity plus second shift capacity are less than total segment demand

At the beginning of the simulation, how many assembly lines are there?

five lines per company

If you sell all of the capacity on a production line, inventory from that line is sold at

half the average cost of production

In order to achieve 100% accessibility, a team must:

have two products in the same segment

If you purchase production capacity and automation:

it is available in the next year

A change in MTBF affects:

material cost

If you or your team decides to introduce a new sensor product, when should capacity and automation be purchased?

one year/round prior to product release

Which one of the following is NOT one of the four product characteristics that R & D can set?

quality

Age, price and ___________ criteria remain constant from year to year.

reliability

Last year your company built 1,500,000 units of product Able and sold 1,405,000 After 14 months in R&D, a revision of product Able is due out tomorrow, on January 2 (the first business day of this year) What will happen to the unsold inventory of 95,000 units of

they'll be reworked to match the new specifications for product Able

The Finance Department can use which of the following methods to acquire capital for company activities?

current debt, stock issues, bond issues, and profits