Bogey Co Recorded Operating Data for Its Cheap Division for the the Year

question 103

Multiple Choice

Bogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to Sales $ 1,400,000
Controllable margin 160,000
Total average assets 4,000,000
Fixed costs 100,000
What is the ROI for the year?

• A) 4%
• B) 35%
• C) 6%
• D) 1.5%

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Definitions:

Buyer-Seller Relationships

The interactions and associations between individuals or businesses engaging in the exchange of goods and services.

Conglomerate Merger

A type of corporate action where firms in unrelated business activities or industries merge or acquire each other.

Horizontal Merger

A business consolidation that occurs between firms which operate in the same industry, often aimed at reducing competition or achieving economies of scale.

Interlocking Directorate

A situation where one or more members of the board of directors of a corporation are also on the board of directors of a competing corporation; illegal under the Clayton Act.