The Area Manager of the Red White and Brew Restaurants

question 37

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: $$\begin{array} { l c c c } \text { Project } & \text { Investment } & \text { Controllable Margin } & \text { ROl }\\\text { Phoenix } & \$ 120,000 & \$ 30,000 & 25 \% \\\text { Chicago } & \$ 540,000 & \$ 50,000 & 9.25 \%\end{array}$$ The Red White and Brew segment has currently $2000000 in invested capital and a controllable margin of $250000. 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:

Eardrum

A slim barrier that divides the external ear from the internal ear, resonating when it encounters sound waves.

Tuning Fork Test

A medical test that uses the vibration of a tuning fork to assess hearing or vibratory sensation.

dB

A unit of measurement used to express the magnitude of sound pressure or electrical power on a logarithmic scale.

Intensity

The degree of strength, force, or concentration applied in a particular action or by a particular phenomenon, such as light, sound, or physical exercise.