Reference: 12-05
the Holmes Division Recorded Operating Data as Follows

question 36

Multiple Choice

Reference: 12-05
The Holmes Division recorded operating data as follows for the past year: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 200,000 \\\hline \text { Net operating income } & 25,000 \\\hline \text { Average operating assets } & 100,000 \\\hline \text { Stockholders' equity } & 80,000 \\\hline \text { Residual income } & 13,000 \\\hline\end{array}$$
-For the past year, the margin was?

• A)14.75%.
• B)13.00%.
• C)12.50%.
• D)15.00%.

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Definitions:

Profit Maximization

Refers to the process or strategy focused on increasing the net profit of a business by either increasing revenue, reducing costs, or both.

Transportation Strategy

The planning and implementation of effective means to move goods and services from one location to another, aiming to optimize costs, efficiency, and reliability.

Competitive Strategy

A long-term plan of action designed to achieve a sustainable advantage over competitors.

Cross Dock Distribution Center

A facility specifically designed for cross-docking processes, facilitating the swift transfer of goods from incoming to outgoing transportation without long-term storage.