Use the Table for the Question(s)below

question 29

Multiple Choice

Use the table for the question(s) below.
-Consider the above Income Statement for Xenon Manufacturing. All values are in millions of dollars. Calculate the operating margin for 2017 and 2018. What does the change in the operating margin between these two years imply about the company?

• A)The efficiency of Xenon Manufacturing has significantly fallen between 2017 and 2018.
• B)The ability of Xenon Manufacturing to sell its goods and services for more than the costs of producing them rose between 2017 and 2018.
• C)The efficiency of Xenon Manufacturing has significantly risen between 2017 and 2018.
• D)The leverage of Xenon Manufacturing fell slightly between 2017 and 2018.

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Definitions:

Monopolist

A single seller in a market with no close substitutes for the product, giving the seller considerable control over prices.

Capital Owners

Individuals or entities that own assets used for the production of goods or services, which may include physical capital, financial capital, or intellectual property.

Excess Burden

The economic loss that society suffers as a result of taxes or subsidies that distort market decisions.

Tax

A mandatory monetary fee or different kind of tax that is charged to a taxpayer by a government entity to finance public spending.