1. Which of the following is a reason why a company may choose to rent instead of buy real estate?

All of these are reasons to rent

Ownership would reduce operational flexibility

Ownership requires a large capital committment

Real estate may not be the core business of the company

2. A productivity index of 110% means that a company's labor cost would have been 10% higher if it had not made production improvements. The direct labor costs for Ballwin were $32,707. These labor costs could have been $20,000 higher if investments in training that increased productivity had not been made. What was the product productivity index for Baldwin that led to such savings?

a. 155.0%

b. 161.1%

c. 38.9%

d. 45.0%