Question

At Attical​ Publishing, products are produced by a team representing different functional​ groups, none of which have supervisory authority over any of the others. Represented departments include​ design, production, and marketing.

Design department members are skilled at identifying customer requirements and creating product specifications. Their success is measured by return on product​ investment, which takes into account both the money earned by a product and the money spent on that product.
Production department members are skilled at project execution. They are responsible for creating products according to the design department​ member's specification. The production department is considered successful when it completes projects according to schedule and project spending does not exceed the​ project's budget.
Marketing department members are responsible for building profitable relationships with target market segments. They are skilled at communicating a​ product's value and persuading customers to make purchases. Marketing department​ members' success is measured by the revenue that the products take in.
Suppose that Attical is choosing between the China project and the Japan project. The China project is expected to earn slightly more revenue than the Japan​ project, but the China project will cost more to complete. Which of the following is MOST likely to be​ true?

a) The China project will be more profitable in the long run.
b) The Japan project will have a higher return on investment.
c) The Japan project will require more resources.
d) The China project will have a quicker payback period.

Answer 1

The Japan project is most likely to have a higher return on investment compared to the China project. It is not safe to assume that the China project will be more profitable in the long run. The question does not provide information about the resource requirements of the two projects.

Step-by-step explanation:

The Japan project is most likely to have a higher return on investment (ROI) compared to the China project. In the scenario described, the success of the marketing department is measured by the revenue that the products generate. Since the Japan project is expected to earn slightly more revenue than the China project, it is more likely to have a higher ROI.

While the China project may earn slightly more revenue, it will also cost more to complete. This means that the profit margin of the China project may be lower than that of the Japan project. Therefore, it is not safe to assume that the China project will be more profitable in the long run.

Additionally, the question does not provide any information about the resource requirements of the Japan and China projects. Therefore, we cannot determine whether the Japan project will require more resources than the China project.