If the Operating Asset Turnover Ratio Increased by 30 Percent

question 75

Multiple Choice

If the operating asset turnover ratio increased by 30 percent and the margin increased by 20 percent,how would the divisional ROI react?

• A)increase by 20 percent
• B)increase by 56 percent
• C)decrease by 50 percent
• D)decrease by 60 percent

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Definitions:

American Revolution

The period of political and military action (1775-1783) during which the thirteen American colonies won independence from Great Britain, leading to the establishment of the United States of America.

Labor

The work performed by individuals that contributes to the production of goods and services, typically rewarded with wages.

Capital

Financial assets or the financial value of assets, such as cash and securities, or fixed assets like machinery and buildings, used in producing goods and services.

American Economy

The economic system of the United States characterized by a mixture of private and public enterprises, a high level of technological innovation, and a relatively high GDP per capita.