The Maxim Corporation Reported the Following Operating Results for Its

question 15

Multiple Choice

The Maxim Corporation reported the following operating results for its three divisions: South, West, and East.
$\begin{array}{lrrrrr}&\text { South Division }&\text { West Division}&\text { East Division }\\\text { Sales } & \$ 380,000 & \$ 1,700,000 & \$ 2,000,000 \\\text { After-tax income } & \$ 20,000 & \$50,000& \$ 100,000\\\text { Divisional assets } & \$ 200,000 & \$ 625,00 0& \$ 800,000\end{array}$

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Which division has the highest profit margin?

• A) South.
• B) West.
• C) East.
• D) All three divisions have the same profit margin.

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Definitions:

Industry

Industry refers to a group of companies that operate in a similar segment of the economy or share a similar business type, often categorized by their primary business activities.

Just-In-Time

A production and inventory strategy where materials and products are delivered or manufactured just in time for use or sale, reducing storage costs.

Market Share

The segment of a market held by a certain company or product.

Concentration Ratio

A measure used to assess the market share controlled by the top firms in an industry, indicative of market competitiveness or dominance.