If the operating asset turnover ratio increased by 30% and the margin increased by 20%, the divisional ROI
A) would increase by 56%.
B) would decrease by 60%.
C) would increase by 20%.
D) cannot be determined.

Name: If the operating asset turnover ratio increased by 30% and the margin increased by 20%, the divisional ROI A) would increase by 56%. B) would decrease by 60%. C) would increase by 20%. D) cannot be determined.
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Question

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS:
1.30 × 1.20 = 1.56 or a 56% increase

If the Operating Asset Turnover Ratio Increased by 30% and the Margin