The Following Graphic Was Used to Visually Summarize the Following

question 14

Multiple Choice

The following graphic was used to visually summarize the following statement made by Supertuf Bicycle Tire Company in a recent magazine advertisement: "Our patented Supertuf bicycle tire design lasts twice as long as the leading competitor's tire design." Does the graphic correctly represent the statement made in the advertisement?

• A)Not enough information available to make a judgment. More information is needed about how long Supertuf tires last and how long the leading competitor's tires last.
• B)Yes, the area of the first tire is twice the area of the second tire.
• C)No, although the dimensions have doubled, the area of the first tire is more than twice the area of the second tire so the graphic incorrectly represents what is stated in the advertisement.

---

Definitions:

FOB Destination

A shipping term indicating that the seller is responsible for the freight and other shipping charges until the goods reach the buyer's location.

Net Income

The amount of earnings remaining after all expenses, including taxes and interest, have been deducted from total revenues.

Ending Inventory

The total value of all goods available for sale at the end of an accounting period, calculated to evaluate stock levels and assess cost of goods sold.

Consignor

The party in a consignment agreement that provides goods to another party (consignee) to sell on their behalf, retaining ownership until the goods are sold.