The Information Below Relates to Costs,revenues,and Assets Anticipated in the Shoe

question 105

Multiple Choice

The information below relates to costs,revenues,and assets anticipated in the Shoe Division of DKY Footwear Corporation:
$\begin{array}{ll}\text { Sales } & \$ 4,000,000 \\\text { Variable costs } & 75 \% \text { of sales } \\\text { Average assets employed } & \$ 12,000,000\\\text { Fiverl cocte: } &0\end{array}$

How would each of the following measures be affected if sales rise by $5,000 in the Shoe Division?
$\text {\underline{ROI } }$                $\text {\underline{Assert turnover } }$            $\text {\underline{ Profit margin} }$

• A)increase increase increase
• B)increase no change increase
• C)increase increase no change
• D)no change no change increase

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Definitions:

R

Symbol commonly representing resistance in electrical equations, measured in ohms (Ω).

RC Parallel Circuit

An electrical circuit that consists of resistors (R) and capacitors (C) connected alongside each other in parallel, allowing for AC filtering or timed circuits.

R

In electrical engineering, "R" typically refers to resistance, which is a measure of the opposition to the flow of electric current.

Apparent Power

The product of the current and voltage in an AC circuit, measured in volt-amperes, not necessarily equal to the actual power consumed.