Uber State University (USU) Publicly Announces That They Are Going

question 149

Multiple Choice

Uber State University (USU) publicly announces that they are going to emphasize research productivity. They set goals for all faculty members to increase their number of publications in professional journals, and they announce that all future salary increases will depend on their number of publications. Based on the research, which of the following is MOST likely for the faculty at BSU?

• A) The number of publications will increase, but the quality will not necessarily increase.
• B) The quality of the publications will increase, but the number of publications will remain about the same.
• C) Both the number of publications and the quality of the publications will actually decrease.
• D) Research activities will be unaffected, but the quality of teaching in the classroom will improve dramatically.

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Definitions:

Sales Mix

The proportion of different products or services that comprise the total sales of a company, affecting overall profitability.

Contribution Margin Ratio

The percentage of revenue that exceeds variable costs, indicating the proportion of sales that contributes to fixed costs and profits.

Break-Even Point

The production level or sales volume at which total revenues equal total costs, resulting in zero profit.

Degree Of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales.