Return on investment (ROI) can be decomposed into the asset turnover and the:
A) gross margin ratio.
B) profit margin ratio.
C) operating margin ratio.
D) contribution margin ratio.

Name: Return on investment (ROI) can be decomposed into the asset turnover and the: A) gross margin ratio. B) profit margin ratio. C) operating margin ratio. D) contribution margin ratio.
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Question

Quizplus · Accepted Answer

ROI can be decomposed into asset turnover and profit margin ratio, where ROI = (Net Profit / Sales) * (Sales / Assets).

Return on Investment (ROI) Can Be Decomposed into the Asset