Asked by
Amanda Mccoy
on Dec 16, 2024
Verified
Assuming that sales and average operating assets remain the same, a company's return on investment will:
A) decrease if margin increases.
B) increase if net operating income increases.
C) decrease if net operating income decreases.
D) increase if margin decreases.
Margin
The difference between the selling price of a product and its cost of production.
Net Operating Income
A measure of a company's profitability from its regular business operations, excluding income from investments or taxes.
- Recognize the influence of alterations in sales, expenses, and assets on financial metrics.
- Examine the interplay among sales, operating costs, and net operating income in relation to total performance.
Verified Answer
RH
Learning Objectives
- Recognize the influence of alterations in sales, expenses, and assets on financial metrics.
- Examine the interplay among sales, operating costs, and net operating income in relation to total performance.