The Area Manager of the Red, White, and Brew Restaurants

question 3

Multiple Choice

The area manager of the Red, White, and Brew Restaurants is considering two possible expansion alternatives.The required investments, expected controllable margins, and the ROIs of each are as follows: $\begin{array}{lllr}\text { Project }&\text { Investment }&\text { Controllable Margin }&ROI\\\text { Phoenix } & \$ 120,000 & \$ 30,000 & 25 \% \\\text { Chicago } & \$ 540,000 & \$ 50,000 & 9.25 \%\end{array}$ The Red, White, and Brew segment has currently $2,000,000 in invested capital and a controllable margin of $250,000.Which one of following projects will increase the Red, White, and Brew division's ROI?

• A)Both the Phoenix and Chicago options
• B)Only the Phoenix option
• C)Only the Chicago option
• D)Neither the Phoenix nor the Chicago options

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Definitions:

Emotionally Stressful Events

Situations or occurrences that trigger significant emotional stress, potentially leading to mental health challenges.

Nondeclarative Memory

A type of long-term memory that stores skills, habits, and learned responses that people can perform without conscious awareness.

Infantile Amnesia

The inability of adults to retrieve episodic memories (memories of situations or events) from the first few years of life.

Long-Term Potentiation

A long-lasting enhancement in signal transmission between two neurons that results from stimulating them simultaneously.