A manager can always increase his/her return on investment (ROI)by:
A) reducing the asset turnover.
B) decreasing residual income.
C) increasing the operating profit margin.
D) expanding operating assets while holding sales and expenses constant.

Question

Quizplus · Accepted Answer

Increasing the operating profit margin is the best choice to increase ROI. This can be done by either increasing revenue or decreasing expenses or both. By increasing the profit margin, the company is generating more profit for every dollar of sales, thereby increasing the return on investment. The other options, such as reducing asset turnover, decreasing residual income, or expanding assets while holding sales and expenses constant, are not effective ways to increase ROI.

A Manager Can Always Increase His/her Return on Investment (ROI)by