Question

Apple Inc. and Microsoft Corporation are competitors in the computer industry. Following is a table of Total revenue and R&D expenses for both companies.

Apple Inc.

Microsoft Corporation

(in millions)	2016	2015	2014		2016	2015	2014
Total revenue	$215,639	$233,715	$182,795		$85,320	$93,580	$86,833
R&D expenses	$10,045	$8,067	$6,041		$11,988	$12,046	$11,381

Which of the following is true?

Group of answer choices

Apple Inc is the more R&D intensive company of the two.

Apple Inc has become less R&D intensive over the three years.

Microsoft Corporation is less R&D intensive in 2016 than in 2015.

Microsoft Corporation is more R&D intensive in 2016 than in 2015.

None of the above

Answer 1

Ans: Microsoft Corporation is more R&D intensive in 2016 than in 2015.

Explanation:

From the above table it is seen that Microsoft Corporation spends more on R&D than Apple Inc. So, Microsoft Corporation is more R&D intensive. So, first option is incorrect.

Apple Inc. has spent more on R&D in 2016 than in 2015 and 2014. So, second option is incorrect.

Microsoft Corporation increased R&D from 12.87%% in 2015 to 14.05% in 2016. So, third option is correct.