Return on investment (ROI) is a term often used to express income earned on capital invested in a division (investment center) . A division's ROI would increase if:
A) Sales increased by the same dollar amount as expenses and total assets increased.
B) Sales remained the same and expenses were reduced by the same dollar amount that total assets increased.
C) Sales decreased by the same dollar amount that expenses increased.
D) Sales and expenses increased by the same percentage that total assets increased.
E) Net profit margin on sales increased by the same percentage that total assets increased.
Correct Answer:
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Q48: The return on investment (ROI) ratio measures:
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