If the Operating Asset Turnover Ratio Increased by 30 Percent

question 73

Multiple Choice

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

• A)would increase by 56 percent.
• B)would decrease by 60 percent.
• C)would increase by 20 percent.
• D)cannot be determined.

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Definitions:

Elevates

To lift or move something or someone to a higher place, position, or level.

Scapula

A flat, triangular bone located in the upper back, also known as the shoulder blade, that connects the humerus with the clavicle.

Levator Scapulae

A muscle located in the back and side of the neck that elevates the scapula (shoulder blade).

Transverse Processes

Lateral projections from the vertebrae to which muscles and ligaments attach, participating in the movement and stability of the spine.