Answer the Following Questions Using the Information Below:
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question 28

Multiple Choice

Answer the following questions using the information below:
The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a fire that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged:
$\begin{array}{lrrr}&\text { Tractor Division }& \text { Tiller Division }& \text {Digger Division }\\\text { Sales } & \$ 10,000,000 & (\mathrm{a}) & \$ 2,400,000 \\\text { Net operating income } & \$ 1,000,000 & \$ 1,440,000 & \$ 600,000 \\\text { Operating assets } & (\mathrm{b}) & (\mathrm{c}) & \$ 2,000,000 \\\text { Return on investment } & 0.20 & 0.10 & \text { (d) } \\\text { Return on sales } & (\mathrm{e}) & 0.12 & 0.25 \\\text { Investment turnover } & \text { (f) } & \text { (g) } & 1.2\end{array}$
-What is the Tractor Division's investment turnover?

• A).50
• B) 1.0
• C) 2.0
• D) 2.5

Grasp the impact of changes in productivity on the Marginal Physical Product (MPP) and MRP.

Recognize the implications of price changes on resource demand and employment levels.

Comprehend the concepts of derived demand and how it differs from final demand.

Understand the effects of complementary and substitute resources on productivity.

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Definitions:

Firm

An organization that sells goods or services in order to make a profit.

Industry

The organized economic activity connected with the production, manufacture, or construction of goods and services.

Automobile Insurance Costs

The expenses related to insuring a car against accidents, theft, and other risks.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the cost per unit of output decreases with increasing scale.