Which of the Following Is an Appropriate Computation for Return

question 45

Multiple Choice

Which of the following is an appropriate computation for return on investment?

• A) Sales divided by total assets
• B) Net income divided by total assets
• C) Net income divided by sales
• D) Sales divided by stockholders' equity

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Definitions:

Equilibrium Wage

The rate of wages where the supply of workers equals the demand for workers.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while holding other inputs constant.

Marginal Product

The additional output that is produced by employing one more unit of a particular input, holding other inputs constant.

Market Price

The current price at which an asset or service can be bought or sold.