Which of the following would increase return on investment (ROI)?
A)Decrease sales and expenses by the same percentage.
B)Increase total assets.
C)Increase sales dollars with no change in total assets.
D)Decrease sales and expenses by the same dollar amount.

Question

Quizplus · Accepted Answer

Increasing sales dollars without changing total assets would increase ROI. Option A would not change the ROI since the same percentage of decrease in sales and expenses would result in the same ROI. Option B would not necessarily increase ROI since it depends on whether the return on the new assets is higher than the cost of obtaining them. Option D would also not change the ROI since the same dollar amount decrease in sales and expenses would result in the same ROI.

Which of the Following Would Increase Return on Investment (ROI)