Use the Information Below to Answer the Following Question(s)

question 107

Multiple Choice

Use the information below to answer the following question(s) .Ruth Cleaning Products manufactures home cleaning products.The company has two divisions, Bleach and Bleach-2.Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures.The following information is provided for the year just ended:
The company is currently using a required rate of return of 15 percent.
-What are Bleach's and Bleach-2's return on investment based on current values?

• A)0.22; 0.67
• B)0.42; 0.52
• C)0.52; 0.42
• D)0.67; 0.22
• E)0.50; 0.45

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Definitions:

Gross Domestic Product

The total market value of all final goods and services produced within a country's borders in a specific time period, commonly used as a measure of economic performance.

Underground Economy

Economic activities that occur outside of official regulation or taxation systems, often including undocumented labor and illegal trade.

National Income Accounting

A system of accounts that countries use to measure the overall economic activity and the total income of their citizens.

Natural Resources

Raw materials and resources provided by nature without human intervention, crucial for economic production, such as minerals, forests, and water.