Two Divisions of Crowson Company (Divisions X and Y)have the Same

question 70

Multiple Choice

Two divisions of Crowson Company (Divisions X and Y) have the same profit margins.Division X's investment turnover is larger than that of Division Y (1.2 to 1.0) .Income from operations for Division X is $50,000,and income from operations for Division Y is $38,000.Division X has a higher return on investment than Division Y by

• A)using income from operations as a performance measure.
• B)comparing income from operations.
• C)applying a negotiated price measure.
• D)using its assets more efficiently in generating sales.

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Definitions:

Utility Function

A mathematical representation of how consumers rank different bundles of goods based on the satisfaction each bundle provides.

Indifference Curve

A representation of the consumer's preferences, illustrating different combinations of goods that provide the same level of utility or satisfaction.

Apples

Edible fruits from the apple tree, known for their sweet taste and crunchy texture, and used in a variety of culinary dishes.

Bananas

A type of fruit that is elongated, curved, and covered with a peel, typically yellow when ripe, and consumed as a sweet source of energy.