The Baily Division Recorded Operating Data as Follows for the Past

question 47

Multiple Choice

The Baily Division recorded operating data as follows for the past two years:

$\begin{array}{|l|r|r|} \hline& \text { Year 1 } & \text { Year 2 } \\\hline \text { Sales } & ? & \$ 1,200,000 \\\hline \text { Shareholders' Equity } & \$ 540,000 & \$ 720,000 \\\hline \text { Average Operating Assets } & \$ 600,000 & ? \\\hline \text { Margin } & 15 \% & ? \\\hline \text { Return on Investment } & 22.5 \% & 18 \% \\\hline\end{array}$
$\text { Baily Division's turnover was exactly the same in both Year } 1 \text { and Year } 2 .$


-What was the margin in Year 2?

• A) 12.00%.
• B) 18.75%.
• C) 22.50%.
• D) 27.00%.

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Definitions:

Lung Cancer

A type of cancer that originates in the lungs, often associated with smoking and exposure to hazardous pollutants.

Benefits-Received Tax

A taxation principle where taxes are levied on individuals based on the benefits they receive from the government's use of the collected tax.

Vertical Equity

A principle in taxation that proposes taxpayers with a greater ability to pay, such as higher income levels, should pay more in taxes than those with lesser ability to pay.

Horizontal Equity

The principle that individuals with the same income or resources should be treated equally by the tax system.