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The following Business Case is constructed properly.
''During fiscal year 2008 the warranty returns for electric razor Model 312 were 1.3%. This represents a gap of 0.5% over target costing the company $18,500 per month.''
Suggested Answer: A
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16 comments · newest first
TU
Tuyet
11 months ago
Totally agree, that seems off!
LE
Lenna
11 months ago
Wait, how does 0.5% lead to that much cost?
ZO
Zona
12 months ago
I don't think that's a big enough gap to cost $18,500.
AL
Albina
12 months ago
Sounds like a solid case to me!
OT
Otis
12 months ago
Warranty returns were only 1.3%.
EV
Eveline
1 year ago
I practiced a case where the warranty returns were linked directly to customer satisfaction. This one seems to lack that connection.
LE
Leonora
1 year ago
I'm not entirely sure, but I feel like the gap should be explained more clearly. It seems like there's missing context here.
BR
Brandon
1 year ago
I remember a similar question where the focus was on how warranty returns impact profitability. This one feels a bit off.
DA
Dahlia
1 year ago
I think the statement might be misleading because it mentions a gap but doesn't clarify how that affects the overall cost structure.
CH
Charlene
1 year ago
Hmm, I'm a bit confused about how to allocate the overhead costs between the two products. I'll need to review the information carefully to make sure I understand the approach.
PH
Phung
1 year ago
Option C seems like a risky move to me. Relying on crowd-sourcing for such a critical application with strict regulatory requirements doesn't seem like a good idea. I think we need to invest in a sustainable test automation strategy, even if it means exploring new tools. Option A seems like the safest bet.
TH
Thora
1 year ago
I practiced similar questions, and I think the formula involves fixed costs plus desired profit, divided by the contribution margin ratio or something like that. Is that right?
RA
Rasheeda
1 year ago
I'm uncertain about this one; I thought histograms were related to cumulative data, but now I'm not so sure.
CL
Claribel
1 year ago
Okay, the shadow price for skilled labor being $0 means it's not a binding constraint. But the shadow price for material A being $11.70 is important - that tells me how much the contribution would increase if I could get an extra unit of that material.
TR
Tran
1 year ago
Okay, I think I've got it. The disadvantage of using grants is that the government can exert more control over the program design, expenditures, and costs. So the correct answer is E - all of the above.
AV
Avery
1 year ago
My notes mentioned something about needing Windows Server Backup, but I'm not positive about the other features needed for Avaya.