Use the Table for the Question(s)below

question 34

Multiple Choice

Use the table for the question(s) below.
Income Statement for Xenon Manufacturing:

-Consider the above Income Statement for Xenon Manufacturing.All values are in millions of dollars.Calculate the operating margin for 2014 and 2015.What does the change in the operating margin between these two years imply about the company?

• A)The efficiency of Xenon Manufacturing has significantly risen between 2014 and 2015.
• B)The ability of Xenon Manufacturing to sell its goods and services for more than the costs of producing them rose between 2014 and 2015.
• C)The efficiency of Xenon Manufacturing has significantly fallen between 2014 and 2015.
• D)The leverage of Xenon Manufacturing fell slightly between 2014 and 2015.
• E)The revenues available to equity holders fell slightly between 2014 and 2015.

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Definitions:

Relatively Simple Process

A process that is not complex, involving few steps or components, and is easy to understand or implement.

Legitimate Power

The authority a leader holds as a result of their position in an organization, which compels followers to obey.

Inborn Qualities

Traits or characteristics that are present from birth, often used in discussions about natural talent or predispositions.

Position Power

The authority and influence bestowed by a position or office in an organization, enabling control over resources and decision-making.