1. In essence, a balanced scorecard lays out a theory of how the company can take concrete actions to attain its desired outcomes. The strategy should seem plausible, but it should be regarded as only a theory.

True or False

2.

Leete Inc. reported the following results from last years operations:

Sales	$	14,000,000
Variable expenses		9,660,000
Contribution margin		4,340,000
Fixed expenses		2,940,000
Net operating income	$	1,400,000

Last year's margin was closest to:

• 20.0%
• 79.0%
• 31.0%
• 10.0%