If the turnover increased by 30 percent and the margin decreased by 30 percent,how would the ROI respond?
A)decrease by 9 percent
B)increase by 69 percent
C)increase by 90 percent
D)decrease by 91 percent

Question

Quizplus · Accepted Answer

ROI (Return on Investment) is affected by both turnover and margin. If turnover increases by 30%, it multiplies the ROI by 1.3. If margin decreases by 30%, it multiplies the ROI by 0.7. The combined effect is 1.3 * 0.7 = 0.91, which means the ROI is 91% of its original value, indicating a decrease of 9%.

If the Turnover Increased by 30 Percent and the Margin