Which One of the Following Will Not Increase Return on Investment

question 123

Multiple Choice

Which one of the following will not increase return on investment?

• A) Variable costs are increased
• B) An increase in sales
• C) Average operating assets are decreased
• D) Variable costs are decreased

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Definitions:

Marginal Tax Rate

The marginal tax rate is the percentage of tax applied to your income for each tax bracket in which you qualify, essentially the rate paid on the last dollar of income.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total taxes paid by the total taxable income.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of additional income that will be taxed.

Marginal Tax Rate

The rate at which the next dollar of taxable income will be taxed.