Management Quiz

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Q U ES TI O N 1 Paulo Sanchez feels that there is a market niche for software that helps entrepreneurs file for a patent. Surveying the features and prices of legal forms already in the market, the Paulo believes that a price of $150 would be about right for such software. At that price, he estimates that 1,000 copies could be sold each year. To design, develop, produce and service this software, an investment of $400,000 would be required. Paulo desires a 15% return on his investment (ROI). Given these data, the target cost to create, sell, and service the software is: $150 $60 $90 $40 1 points Q U ES TI O N 2 (Not a repeat question.) The New Product Development Team at Mattel Inc. has developed a new version of the…show more content…
The company desires a 15% return on investment (ROI). Given these data, the target cost to manufacture, sell, distribute, and service one mixer is: $25.50 $4.50 $22.50 $7.50 1 points Q U ES TI O N 4 (Not a repeat question.) The New Product Development Team at Mattel Inc. has developed a new version of the Barbie doll for the upcoming holiday season - "Holiday Barbie". Their market research suggests that they can sell approximately 500,000 units of Holiday Barbie at a price of $13.50/unit to retail stores. The variable production costs are $4.50/unit and total fixed costs are expected to be $3,600,000. In order for the new design to enter production, the target profit on the new doll must equal 30% each year on Mattel's capital investment. The total required investment is $3,600,000. How many units will Mattel Inc. have to sell to ensure a 30% return on capital to the company? 540,000 units 520,000 units 120,000 units Some other number. Cannot be computed from information provided. 1 points Q U ES TI O N 5 (Not a repeat of the previous NEC questions). New England Cosmetics (NEC) produces several different perfumes and toiletries. Its men's after shave line earns a low return on assets (ROA). NEC is in a very competitive market and therefore cannot raise its prices. It has an asset base of $2.235 million for this line and it currently sells $3.54 million and earns $80,000
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