An increase in which of the following variables should cause an increase in profit per unit of capital?
A) The ratio of total sales to the capital stock.
B) Total sales.
C) The ratio of total sales to total wages and salaries.
D) The capital stock.
E) Total wages and salaries.

Question

Quizplus · Accepted Answer

An increase in the ratio of total sales to the capital stock means that the company is generating more revenue per unit of investment, which should result in higher profit per unit of capital.

An Increase in Which of the Following Variables Should Cause