Ramos Company
Ramos Company Included the Following Information in Its

question 92

Multiple Choice

Ramos Company
Ramos Company included the following information in its annual report:
$\begin{array}{|l|r|r|r}\hline & \mathbf{2 0 1 1} & \mathbf{2 0 1 0} & {\mathbf{2 0 0 9}} \\\hline \text { Sales } & \$ 178,400 & \$ 162,500 & \$ 155,500 \\\hline \text { Cost of goods sold } & 115,000 & 102,500 & 100,000 \\\hline \text { Operating expenses } & 50,000 & 50,000 & 45,000 \\\hline \text { Net income } & 13,400 & 10,000 & 10,500 \\\hline\end{array}$

-Refer to the information for Ramos Company.In a common size income statement for 2011,the cost of goods sold is expressed as: 

• A) 130%
• B) 115%
• C) 64.5%
• D) 63.1%

Understand the impact of income on demand for normal and inferior goods.

Understand the components and utilization of the BCG portfolio planning model.

Identify specific strategies appropriate for each category (Dogs, Question Marks, Stars, Cash Cows) in the BCG Matrix.

Differentiate between various business growth strategies such as concentration, diversification (related and unrelated), integration (forward, backward, vertical), and retrenchment.

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Definitions:

Cultural Eutrophication

The process by which a body of water becomes enriched in dissolved nutrients (like phosphates) from human activity, leading to excessive plant growth and decay that depletes oxygen, harming water quality and aquatic life.

Great Lake

Each of the five large, interconnected freshwater lakes located in North America on the Canada-United States border, constituting the largest group of freshwater lakes by total area.

Water Pollution

The contamination of water bodies such as lakes, rivers, oceans, and groundwater, caused by harmful substances resulting from human activities.

Lake Erie

The fourth-largest lake of the five Great Lakes in North America, known for its fishing industry, recreation, and as a critical source of fresh water.