Question detail

StyleHub serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?3,632, sales of 787 units, and a 41% change in costs or demand. Which option best applies Calculate average rate of return?

Try the question, check the answer, then read the explanation to understand the curriculum point.

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At a glance

MCQ

Type

practice

Style

Topic

Quantitative skills in business

Question

A. Use average rate of return to judge supplier lead time, managers impact, and the business objective in Calculation requirements.
B. Give only a definition of Quantitative skills in business without using the case evidence.
C. Treat margin and markup as identical and ignore the effect on managers.
D. Choose the largest sales figure without checking costs, finance, or context.

Answer

The correct option is: Use average rate of return to judge supplier lead time, managers impact, and the business objective in Calculation requirements.

Explanation

The option is correct because Use average rate of return to judge supplier lead time, managers impact, and the business objective in Calculation requirements. The case evidence gives ?5,132, 787 units, and 41%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse margin and markup, miss the managers, or ignore the business objective.

Common mistake

Calculation requirements common mistake 1

Giving a vague answer instead of directly addressing: Calculate average rate of return..

Answer by clearly explaining how to calculate average rate of return..

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FreshFork serves health-conscious consumers while cutting delivery times; the case evidence includes cash inflow of ?4,364, sales of 889 units, and a 13% change in costs or demand. Which option best applies Calculate average rate of return?