The profit margin for Division B is 8% and the investment turnover is 1.20. What is the rate of return on investment for Division B?
A) 8%
B) 6.7%
C) 7.3%
D) 9.6%
D
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A company with working capital of $720,000 and a current ratio of 2.2 pays a $125,000 short-term liability. The amount of working capital immediately after payment is
a. $845,000 b. $595,000 c. $720,000 d. $125,000
Damages that are fixed in the contract for the amount to be awarded in the event of a breach are
known as: A) Conditional damages. B) Consequential damages. C) Liquidated damages. D) Punitive damages.
The cost management plan includes
A) quality improvement methods. B) quality control methods and expected results. C) project funding requirements. D) duration estimates.
Scenario 12.2 Use the following to answer the questions. Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department stores. The new line would be positioned as a more distinctive brand than the typical glasses sold through department stores, and would be priced higher than other brands in the store, but a lower price line than the current Ray-Ban lines that are sold through more selective stores. In determining the price for this sunglass line, Ray-Ban wants to gather information about all brands sold in department stores and about customers' perceptions of those brands. Refer to Scenario 12.2. Given Ray-Ban's plan for positioning the new sunglass line, they should use a ____ strategy when introducing their new product.
A. promotional B. penetration C. price-skimming D. reference E. secondary-market