Return on Investment (ROI) Can Be Decomposed into the Asset

question 25

Multiple Choice

Return on investment (ROI) can be decomposed into the asset turnover and the:

• A) gross margin ratio.
• B) profit margin ratio.
• C) operating margin ratio.
• D) contribution margin ratio.

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Definitions:

Gross Monthly Earnings

The total amount of income earned in a month before any deductions such as taxes or retirement contributions.

Commission Rates

The percentage or fixed fee that a salesperson receives as compensation for their sales contributions.

Sales Total

The aggregate amount from all sales transactions within a given period.

Account Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.