Retailer promotions are ineffective in getting customers to increase their purchase quantities

Assume the profit margin and the payout ratio of Major Manuscripts, Inc. are constant. If sales increase by 6 percent, what is the pro forma retained earnings?

A. $5,220.18 B. $5,721.42 C. $6,021.56 D. $6,648.42 E. $7,028.56

Martha sends out 300 mail surveys to a representative group of respondents. Of these, 175 fill out the survey and mail it back to her. She realizes that those who responded were significantly more educated and had higher incomes than the general population. This is an illustration of:

a. response error. b. nonresponse error. c. sampling error. d. interest error. e. representation error.