$\text { Estes Company has assembled the following data for its divisions for the past year: }$

question 99

Multiple Choice

$\text { Estes Company has assembled the following data for its divisions for the past year: }$
$\begin{array}{l|r|r|}\hline & \text { Division A } & \text { Division B } \\\hline \text { Average Operating Assets } & \$ 500,000 & ? \\\hline \text { Sales } & ? & \$ 520,000 \\\hline \text { Operating Income } & \$ 100,000 & \$ 20,300 \\\hline \text { Turnover } & 1.25 & 4 \\\hline \text { Margin } & ? & 3.9 \% \\\hline \text { Minimum Required Rate of Return } & 14 \% & ? \\\hline \text { Residual Income } & ? & \$ 6,000 \\\hline\end{array}$
-What were Division B's average operating assets rounded to the nearest dollars?

• A) $81,200.
• B) $130,128.
• C) $1,333,333.
• D) $2,080,000.

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Definitions:

Qualified Prospects

Potential customers who have been evaluated and deemed likely to be interested in a company's product or service based on specific criteria.

Customer Base

The group of consumers who regularly purchase the goods or services of a business, forming the foundation of the company's revenue.

Marketing Mix

Refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix - Product, Price, Place, and Promotion.

Four Ps

A marketing mix model that encompasses Product, Price, Place, and Promotion, used by businesses to effectively market their goods and services.