Given the Following Division Performance Indicators,which Is True $\quad$

question 12

Multiple Choice

Given the following division performance indicators,which is true? $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Division }$
$$\begin{array}{l}\begin{array} { l c c c } & \mathrm { A } & B & C \\\text { Sales } & \$ 500 & & \\\text { Net profit } & \$ 10 & \$ 20 & \\\text { Netastets } & & & \$ 80 \\\text { Retun an sales } & & 6.0\%& 4.0 \% \\\text { Asset tungver } & 10 & 5 &\\\text { Retion non aesete }&&&15.0\%\end{array}\end{array}$$

• A)A's return on assets is double that of B
• B)C is the best division at managing its assets
• C)A's sales are 66.7% bigger than C's
• D)B would benefit least from a 10% increase in sales
• E)All of the choices are correct

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Definitions:

MRP Of Land

The Marginal Revenue Product of Land is the additional revenue generated from the use of an additional unit of land, holding other factors constant.

Rent

Rent refers to the payment made periodically by a tenant to a landlord in exchange for the use of land, a building, property, or other assets.

Marginal Revenue Product

Marginal Revenue Product is the additional revenue gained from employing one more unit of a resource, crucial for determining how much of a resource to employ.

Wage Rate

The amount of compensation paid to an employee by an employer in exchange for performing specific tasks within a given period.