Consider the Following Data from Two Divisions of a Company

question 92

Multiple Choice

Consider the following data from two divisions of a company, P and Q:
$\begin{array}{lrrrr}\text { Divisional } &{\mathrm{P}} & \mathrm{Q} \\\text { Sales } & \$ 1,500,000 & \$ 1,000,000 \\\text { Operating Income } & \$ 600,000 & \$ 450,000 \\\text { Investment } & \$ 4,000,000 & \$ 2,750,000\end{array}$ If both divisions were presented with an opportunity to invest in a project that is estimated to achieve an ROI of 15%, what will the units likely decide?

• A) Division P will invest; Division Q will not invest.
• B) Division P will invest; Division Q will be indifferent.
• C) Division P will not invest; Division Q will invest.
• D) Division P will be indifferent; Division Q will not invest.
• E) Neither unit will invest in the projects.

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Definitions:

Resistance Training

A type of physical activity that involves exercising against an external resistance to improve muscle strength and endurance.

Body Composition

The ratio of body fat to lean body mass, including muscles, bones, and organs.

Pear-Shaped

A term often used to describe a body type where the lower part of the body, such as the hips and thighs, is wider than the upper body.

Apple-Shaped

A body shape characterized by greater fat distribution around the waist compared to the hips, associated with a higher risk of metabolic diseases.