Question detail
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?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Quantitative skills in business
Question
- A. Use average rate of return to judge unit contribution, customers 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 cash flow and profit as identical and ignore the effect on customers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use average rate of return to judge unit contribution, customers impact, and the business objective in Calculation requirements.
Explanation
Choose this response because Use average rate of return to judge unit contribution, customers impact, and the business objective in Calculation requirements. The case evidence gives ?5,864, 889 units, and 13%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse cash flow and profit, miss the customers, 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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