Answer:
3/4 square units
Step-by-step explanation:
When linear dimensions of similar figures are related by a factor of k, their areas are related by a factor of k².
For an original figure of area 12, each image figure dilated by a factor of k will have an area of 12k².
For k=1/4, the area is ...
12(1/4)² = 12/16 = 3/4 . . . . square units
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Additional comment
Their volumes are related by a factor of k³. It can help you understand if you think about the area and volume formulas:
A = LW
A' = L'W' = (kL)(kW) = k²·LW = k²·A
Similarly ...
V = LWH
V' = L'W'H' = (kL)(kW)(kH) = k³·LWH = k³·V