Consider the Following to Answer the Question(s) Below

question 22

Multiple Choice

Consider the following to answer the question(s) below:
A sample of firms was selected from the high tech industry (Industry = 1) and the financial services sector (Industry = 0) . Data were collected on the following variables: turnover rate, job growth, number of employees, and innovative index (higher scores indicate a more innovative and creative organizational culture) . Below are the multiple regression results.
-How much of the variability in Turnover Rate is explained by the multiple regression model?

• A) 73.9%
• B) 95.6%
• C) 9.3%
• D) 50.62%
• E) 91.39%

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Definitions:

Contribution Margin Ratio

The portion of sales revenue left over after variable expenses have been deducted, expressed as a percentage of sales revenue.

Variable Expenses

Costs that vary in direct proportion to changes in an activity level or volume, such as raw materials and direct labor.

Sales

Sales refer to the revenue generated from the exchange of goods or services for money or other assets between a seller and a buyer.

Net Operating Income

The profit generated from a company's regular business operations, excluding expenses like taxes and interest.