Question detail

GreenGlow serves online shoppers while training staff; the case evidence includes customer retention of ?3,597, sales of 347 units, and a 12% change in costs or demand. Which option best applies Calculate average rate of return?

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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 customer retention, suppliers 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 fixed and variable costs as identical and ignore the effect on suppliers.
D. Choose the largest sales figure without checking costs, finance, or context.

Answer

The correct option is: Use average rate of return to judge customer retention, suppliers impact, and the business objective in Calculation requirements.

Explanation

This is the best-supported choice because Use average rate of return to judge customer retention, suppliers impact, and the business objective in Calculation requirements. The case evidence gives ?5,097, 347 units, and 12%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse fixed and variable costs, miss the suppliers, 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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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?