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:

Response Time

The duration it takes for a system or service to react to a specific request.

Lifetime Value

The total net profit a company expects to earn from a customer over the duration of their relationship.

Empowerment

The process of increasing the capacity of individuals or groups to make decisions and implement changes in their own lives and communities.

Customer Value

The perception of what a product or service is worth to a customer compared to the options available.