1. The difference between a profit center and an investment center is that:

Group of answer choices

A) An investment center incurs no costs but does generate revenues.

B) An investment center is responsible for making investing decisions such as building a new manufacturing plant.

C) A profit center generates revenues but does not incur any costs.

D) An investment center incurs costs but does not directly generate revenues.

2. Lillard's Sports Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $200,000. Sales for its operating departments are in the table below. How much advertising cost is allocated to Department 1 if the allocation is based on departmental sales? Department Sales 1 $ 440,000 2 800,000 3 360,000

Group of answer choices

A) $45,000.

B) $55,000.

C) $100,000.

D) $90,000.

3. A company's division has sales of $6,000,000, income of $240,000, and average assets of $4,800,000. The division's profit margin is:

Group of answer choices

A) 20%

B) 10%.

C) 5%.

D) 4%