AB Distributors Is a Company That Serves as a Shipping

question 72

Multiple Choice

AB Distributors is a company that serves as a shipping intermediary for other companies. Its sales revenue has increased from the previous year. Jonathan, a sales manager at AB, says, "Since the company has increased its revenue, it is now more profitable." Another manager at AB Distributor, Shawna, suggests that if the company's revenue had not increased, it would not have been able to increase its profits. Which of the following points out a flaw in Shawna's reasoning?

• A) Other similar companies have increased their profits too.
• B) Revenue is not always relevant to figuring profitability.
• C) Profitability is not the only objective of the company.
• D) The company can increase revenue only by cutting costs.
• E) It is possible to increase profits by lowering costs.

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Definitions:

Negative Slope

A downward slope indicating an inverse relationship between two variables, where an increase in one correlates with a decrease in the other.

Xy Axis

Refers to the two-dimensional coordinate system formed by the intersection of the x-axis (horizontal) and y-axis (vertical), used for graphing equations or data points.

Phi Coefficient

A measure of the degree of association between two binary variables, ranging from -1 to 1.

Coefficient of Determination

A statistical measure, often denoted as R^2, that represents the proportion of variance for a dependent variable that's explained by one or more independent variables.