A company is considering a loyalty reward program costing $500,000. The projected gross margin from the program is $700,000. If the hurdle rate of the company is 25%, should the program be funded?

a. Cannot be determined from the information given b. Yes. ROMI = 40% which is greater than the hurdle rate c. No. ROMI=15% which is less than the hurdle rate. d. No. ROMI=20% which is less than the hurdle rate

Consider two firms, A and B. Firm A has a net profit for the year of $10 million and firm B has a net profit of $50 million for the year. Which one of the statements that follows is the most correct?

a. There is insufficient information provided to determine which firm is more operationally efficient. b. Firm B is more operationally efficient. c. Firm A is more operationally efficient. d. Firms A and B have the same level of operational efficiency.