ITEE ITEE-1 | Page 447

Q17. a Section 1-1 Corporate activities Answer Explanation The break-even point is found using the formula: fixed costs ÷ (1 − variable costs ÷ sales). Entering the corresponding values produces the following result: Fixed costs: 450,000 yen (labor costs) + 250,000 yen (depreciation costs) = 700,000 yen Variable costs: 500,000 (materials costs) + 350,000 yen (outsourcing costs) + 350,000 (advertising costs) = 1,200,000 yen Break-even point: 700,000 yen ÷ (1 − 1,200,000 yen ÷ 4,000,000 yen) = 1,000,000 yen Q18. a Section 1-2 Legal affairs Answer Explanation A compliance program concerning personal information protection is a system that manages the systematic implementation of measures related to personal information protection throughout the entire company. Q19. c Section 3-2 System planning Answer Explanation Risk analysis identifies the possible risks of computerization and their causes, and measures the degree of loss and impact that result from occurrence. The risks are prioritized according to predicted probability and the amount of loss, and measures are taken to address them according to priority. Q20. b Section 3-1 System strategy Answer Explanation Rectangular entities represent “employees” and “departments.” Each employee belongs to one (1) department, and each department has one (1) or more employees, so the arrow should point from the department to the employee (“many” side). Q21. b Section 2-3 Business industry Answer Explanation EDI is a mechanism for exchanging electronic data in transactions between companies over communication lines. Q22. b Section 2-1 Business strategy management Answer Explanation A niche strategy concentrates on a specific market (niche market) to secure and maintain profits in, rather than a market with major companies. 41