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:

Leisure

Time spent not working and free from obligations, often dedicated to relaxation or enjoyment.

Nonlabor Income

Income received that is not directly related to current employment or work effort, such as dividends or rental income.

Wage Rate

The amount of compensation or payment in terms of money received by an employee from an employer in exchange for performing specific work or tasks per unit of time.

Lump Sum Payment

A large single payment made at one time, instead of spreading payments over periods, often used in settlements or financial transactions.