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Little Rock Corporation and Memphis Corporation Are Movie Companies

Question 133

Multiple Choice

Little Rock Corporation and Memphis Corporation are movie companies.Comparative data for 20X0 and 20X1 are given below:
 Little Rock  Memphis  Corporation  Corporation  Sales revenue 20×0$8,000,000$4,400,00020×19,600,0006,175,000\begin{array}{lll}&&\text { Little Rock } & \text { Memphis } \\&&\text { Corporation } & \text { Corporation } \\\text { Sales revenue }&20 \times 0 & \$ 8,000,000 & \$ 4,400,000 \\&20 \times 1 & 9,600,000 & 6,175,000\end{array}
 Number of employees 20×0010,0005,50020×19,0006,500\begin{array}{l}\begin{array} { l l l } \text { Number of employees }&20 \times 00 & 10,000 & 5,500 \\&20 \times 1 & 9,000 & 6,500\end{array}\end{array}
Assume that each 20X0 dollar is equivalent to 1.60 of each 20X1 dollar,due to inflation.Taking inflation into account,what is Little Rock Corporation's 20X0 productivity measure in terms of revenue per employee?


A) $1,083.08
B) $1,280.00
C) $1,422.22
D) $1,600.00

Correct Answer:

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