The performance of the manager of Division A is measured by ROI. Which of the following...
The performance of the manager of Division A is measured by ROI. Which of the following would increase ROI?
Question 5 options:
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Increase in sales |
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Increase in average operating assets |
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Increase in expenses |
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Decrease in net operating income |
Homework Answers
Increase in sales would increase ROI as ROI is calculated by dividing Net income / Cost of investment. Hence increase in sales would result in increase in net income.
Hence option increase in sales is correct.
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The performance of the manager of Division A is measured by ROI.
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answer with details or by law
increase in return on investment (ROI), assuming Which of the following will not result in a other factors remain the same? A. A reduction in expenses. B. An increase in net operating income C. An increase in operating assets D. An increase in sales. 4. The Northern Division of the Smith Come last year. If the minimum required rate of return Company had average operating assets totaling $150,000 a Northem was $20,000, then the...
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