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NEW QUESTION 24
The owner of a small hardware store learns that a large competitor is opening a store nearby. The new competitor has smaller profit margins on each unit than the small store but earns profits through larger volume. Which of the following techniques would BEST help the small store remain competitive?

  • A. Lower prices below variable cost
  • B. Improve service by hiring workers specializing in the maintenance of power tools
  • C. Increase the size of the store
  • D. Run advertisements showing how neighborhoods improve through individual home improvement

Answer: B

 

NEW QUESTION 25
A company manager commissions a report to study the relationship between sales volume (in thousands of units) and the number of computers in each of the company’s offices. Based on the regression output, which of the following statements is correct?
Exhibit:

  • A. There is a strong positive linear relationship between sales volume and number of computers in an office.
  • B. When the number of computers in an office increases by 1, the average sales volume increases roughly by 155,000 units.
  • C. When the number of computers in an office increases by 1, the average sales volume decreases by 410 units.
  • D. Less than 3 percent of the variability of sales volume is explained by the number of computers in an office.

Answer: D

 

NEW QUESTION 26
A company’s retained earnings on Dec. 31st, 2009 to 2013 is as follows:

On the pro-forma income statement for 2014, the net income is $10,000. The expected dividends to be paid in 2014 is $3,500. What is the projected retained earnings on Dec. 31st, 2014?

  • A. $31,500
  • B. $15,000
  • C. $18,500
  • D. $35,000

Answer: A

 

NEW QUESTION 27
……

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