The Table Below Shows How Total Donations, Average Donations, Total

question 79

Multiple Choice

The table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. The Chair of the Economics Department at State U says that fundraising employees should be hired as long as their marginal benefit exceeds their marginal cost.If the University follows this advice, then ______ employee(s) will hired, and the net benefit (total donations minus total labor costs) will be ______.

• A)1; $22,000
• B)2; $25,426
• C)3; $25,426
• D)2; $3,476

Understand the components and calculations involved in the DuPont formula for ROI.

Identify and differentiate between the measures for evaluating and controlling investment center performance.

Apply the concept of investment turnover and its impact on return on investment.

Distinguish between investment centers, profit centers, and cost centers.

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Definitions:

Psychological

Relates to the mental processes and emotional state of an individual or group.

Collateral Characteristics

Attributes or features that are parallel or supplementary to the main qualities or aspects of something or someone.

Personal Qualities

The characteristics, traits, or attributes that define an individual’s personality or demeanor.

Integrally Involved

Being essential or fundamental to the entirety of a process, activity, or existence.