Suppose the Operating Asset Turnover Increased by 75% and the Margin

question 109

Multiple Choice

Suppose the operating asset turnover increased by 75% and the margin increased by 50%. What would be the percentage increase in the ROI?

• A) 25.0%
• B) 75.0%
• C) 100.0%
• D) 162.5%

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Definitions:

Potential Value

Represents the future benefits or value that an asset, investment, or action will potentially generate, not yet realized.

Innovation Process

A series of steps that begins with ideation and proceeds through to the implementation of new products, services, or processes.

Idea Creation

The process of generating, developing, and communicating new concepts or innovations.

Cause-Effect Relationship

A connection between events or conditions where one directly triggers the outcome of the other.