Use the Table for the Question(s) Below

question 86

Multiple Choice

Use the table for the question(s) below.
Income Statement for Xenon Manufacturing:
Selling, general,
Earnings before interest

-Consider the above Income Statement for Xenon Manufacturing. All values are in millions of dollars. Calculate the operating margin for 2008 and 2009. 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 2008 and 2009.
• B) The ability of Xenon Manufacturing to sell its goods and services for more than the costs of producing them rose between 2008 and 2009.
• C) The efficiency of Xenon Manufacturing has significantly fallen between 2008 and 2009.
• D) The leverage of Xenon Manufacturing fell slightly between 2008 and 2009.

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Definitions:

Priority Rules

Guidelines or criteria used to determine the sequence in which tasks, projects, or products are addressed or processed.

Shortest Processing Time

A rule in production scheduling where jobs are sequenced based on ascending order of their processing times, with the shortest first.

Average Completion Time

The average duration taken to complete all tasks or processes within a specified set of operations or activities.

Job Lateness

The amount of time by which the completion of a job exceeds its originally scheduled or planned delivery time.