Comp$-$XM $-$ Dashboard

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mpxm$/$board$-$query

BUAD $1010$ Final Exam Spring $202412$:$55$ pm

a Aayush

Points: $10$

$2024$ Capsim Management Simulations, Inc.$($B

Investing $$1,500,000$ in TQM$\text{'}$s Channel Support Systems initiative will at a minimum increase demand for your products $1\mathrm{.}7\%$ in this and in all future rounds. $($Refer to the TQM Initiative worksheet in the CompXM Decisions menu.$)$ Looking at the Round $0$ Inquirer for Andrews, last year's sales were $$163,712,225.$ Assuming similar sales next year, the $1\mathrm{.}7\%$ increase in demand will provide $$2,783,108$ of addifional revenue. With the overall contribution margin of $34\mathrm{.}2\%,$ after direct costs this revenue will add $$951,823$ to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels. How long will it take to achieve payback on the initial $$1,500,000$ TQM investment, rounded to the nearest month?

Select : $1$

$13$ months

TQM investment will not have a significant financial impact

$19$ months

$6$ months