Bob Owns an Auto Parts Firm

question 19

Multiple Choice

Bob owns an auto parts firm.He uses a combination of steel and aluminum to produce his auto parts.All of the following combinations will finish the task on time.Steel costs $15 per unit and the aluminum costs $50 per unit.What combination of steel and aluminum should he use?

• A)10 units of steel and 10 units of aluminum
• B)12 units of steel and 8 units of aluminum
• C)15 units of steel and 7 units of aluminum
• D)20 units of steel and 6 units of aluminum

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Definitions:

Retains

Refers to the portion of earnings or profits that a company decides to keep rather than distribute to shareholders as dividends, often used for reinvestment.

Constant Ratio

A strategy involving maintaining a fixed percentage allocation among different asset classes.

Dividend Payout Ratio

A financial metric that shows the percentage of earnings a company distributes to its shareholders in the form of dividends.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs associated with making and selling the product, calculated as net income divided by revenue.