# CMIquiz

Satisfactory Essays
388 Words
Grammar
Plagiarism
Writing
Score
CMIquiz
1. a. What is the “average” size of the market in CMI pads given that each set of 6 CMI pads will drive 10,000 feet?
Market Size
Hammers 19500 26000
Weeks used 25 25
Hours per week 30 30
Feet per hour 20 20
Feet per year 290000000 390000000
Feet Per Set
(4 initially plus 2) 10000 10000
Sets per year 29000 39000
% of Market 1.72% 1.28%
It is estimated that there are 19,500 to 26,000 hammers in use 25 weeks per year or 30 hours per week. These hammers average 20 feet per hour for 290 million to 390 million feet driven annually. If six pads per set will drive 10,000 feet then the market for coiled metal pads would be 174,000 to 234,000 pads annually

b. What is the “average” size of the market if the pads last as long as the Kendrick job?

2. Value is the total of the pile driving time savings, the change time savings, and the total cost of the asbestos pads; divided by the number of CMI pads used.

a. Based on the Kendrick job results, what is the value of a CMI Pad?

b. Based on Corey job results, what is the value of a CMI Pad?

3. What is the price of a CMI pad if the CMI set is priced equal to the total cost of the asbestos pads used in the Kendrick job?

4. What is the price of a CMI pad if it is priced such that the value created in the Corey job is exactly split between Corey and Curled Metal?

5. At a price of \$600 to the large contractor and 25% market share (and that your production equals your sales in units, create a proforma income statement (contribution method). What is the total profit?

6. What price results in breakeven (\$0 profit) if you sold and produced 12,000 CMI pads?

7. At a price of \$400, how many units must be sold to breakeven at the 9,000 unit production rate?

8. For question #7 above, at a price of \$400, what is the market share required to

## You May Also Find These Documents Helpful

• Satisfactory Essays

Average material cost per unit = (33*0.04) + (35*0.05) + (38*0.12) + (39*0.79) = \$38.44…

• 256 Words
• 2 Pages
Satisfactory Essays
• Satisfactory Essays

The standard cost of Product B manufactured by Mateo Company includes three units of direct materials at \$5.00 per unit. During June, 28,000 units of direct materials are purchased at a cost of \$4.70 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B.…

• 443 Words
• 2 Pages
Satisfactory Essays
• Good Essays

(d) if Washburn achieves the sales target of 2,000 units at the \$349 retail price, what will its profit be?…

• 447 Words
• 2 Pages
Good Essays
• Satisfactory Essays

3. If the current price of a market basket of goods is \$850 and the base year price for the same basket…

• 1319 Words
• 11 Pages
Satisfactory Essays
• Good Essays

2. a. What is the best estimate of the replacement cost (or current cost) of Caterpillar’s inventory as…

• 447 Words
• 2 Pages
Good Essays
• Better Essays

a. What is the per ton cost of ductile iron casting at the Lynchburg Plant? At the Archer Creek Plant? At the Radford Plant?…

• 977 Words
• 4 Pages
Better Essays
• Good Essays

2 We recommend that CMI utilize a value-based pricing strategy to introduce the 11 ½ inch metal pad and price it at \$299.00 per pad. The value and efficiency of the metal pad will be the driving force behind this price strategy and will offer the customer a savings of up to 33 percent. A major fixed cost that CMI needs to consider is the 360 percent of labor to account for engineering that is required to create the pads at the 9000 year production level. There will be added value shown to the customer by not having to invest in asbestos protection gear and avoiding future liability suits.…

• 1064 Words
• 5 Pages
Good Essays
• Satisfactory Essays

2. How much cost would be charged to an in-house manufacturing department that consumed 1,800 hours of market analysis time, was provided 280 designs relating to 10 products, and requested 92 engineering tests?…

• 406 Words
• 2 Pages
Satisfactory Essays
• Good Essays

• 2023 Words
• 9 Pages
Good Essays
• Good Essays

(a) Calculate the estimated break-even point in annual unit sales of the new product if Martinez…

• 496 Words
• 2 Pages
Good Essays
• Satisfactory Essays

|Break-even point in sales dollars |\$3,197 / .439 = |\$3,260 / .428 = |\$4,889 / .418 = |…

• 948 Words
• 4 Pages
Satisfactory Essays
• Powerful Essays

Chosen solution: Following a comparison between all alternatives we concluded that EVC was the best pricing method. This method takes into account the real value to the customer according to which CMI should price each pad at \$2,150.…

• 3444 Words
• 14 Pages
Powerful Essays
• Powerful Essays

1) What are the core benefits of the new pile pad product for a customer? (list both qualitative factors and factors that you can quantify based on the case).…

• 1589 Words
• 7 Pages
Powerful Essays
• Satisfactory Essays