Question

Assuming that sales and average operating assets remain the same, a company's return on investment will:...

Assuming that sales and average operating assets remain the same, a company's return on investment will:

Question 4 options:

decrease if margin increases.

increase if net operating income increases.

increase if margin decreases.

decrease if net operating income decreases.

Homework Answers

Answer #1

In case of any doubts or Issues, please comment below

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following data pertain to Turk Company's operations last year: Sales $ 900,000 Net operating income...
The following data pertain to Turk Company's operations last year: Sales $ 900,000 Net operating income $ 36,000 Contribution margin $ 150,000 Average operating assets $ 180,000 Stockholders' equity $ 100,000 Plant, property, & equipment $ 120,000 Turk's return on investment for the year was:
Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI).
Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year:Sales$730,000Net operating income$13,140Average operating assets$100,000Required:1. Compute the Springfield club’s return on investment (ROI).(Round your answers to 2 decimal places.)Margin1.80%Turnover7.30timesROI13.14%2. Assume that the manager of the club is able to increase sales by $73,000 and that, as a result,...
Each of a company's two product lines has a different contribution margin ratio. If the company's...
Each of a company's two product lines has a different contribution margin ratio. If the company's total sales remain the same but the sales mix shifts toward selling more of the product with the LOWER contribution ratio, which of the following is true? operating income will decrease. the average contribution margin ratio will decrease. the breakeven point will increase. all of the answers are true.
This year Andrews achieved an ROE of 6.9%. Suppose next year the profit margin (Net Income/Sales)...
This year Andrews achieved an ROE of 6.9%. Suppose next year the profit margin (Net Income/Sales) decreases. Assuming sales, assets and financial leverage remain the same next year, what effect would you expect this action to have on Andrews's ROE? Andrews ROE will increase. Andrews ROE will decrease. Andrews ROE will remain the same.
Carrol Company has sales of $9,000,000, operating assets of $3,600,000, a return on investment of 15%....
Carrol Company has sales of $9,000,000, operating assets of $3,600,000, a return on investment of 15%. The firm’s sales margin is: 15.0% 6.0% 2.0% 37.5%
This year Andrews achieved an ROE of 15.3%. Suppose next year the profit margin (Net Income/Sales)...
This year Andrews achieved an ROE of 15.3%. Suppose next year the profit margin (Net Income/Sales) decreases. Assuming sales, assets and financial leverage remain the same next year, what effect would you expect this action to have on Andrews's ROE? Select: 1 Andrews ROE will remain the same. Andrews ROE will decrease. Andrews ROE will increase.
This year Andrews achieved an ROE of 18.4%. Suppose next year the profit margin (Net Income/Sales)...
This year Andrews achieved an ROE of 18.4%. Suppose next year the profit margin (Net Income/Sales) decreases. Assuming sales, assets and financial leverage remain the same next year, what effect would you expect this action to have on Andrews's ROE? Select: 1 Andrews ROE will decrease. Andrews ROE will increase. Andrews ROE will remain the same.
Company A B C Sales $360,000 $720,000 $620,000 Net operating income $49,000 Average operating assets $152,000...
Company A B C Sales $360,000 $720,000 $620,000 Net operating income $49,000 Average operating assets $152,000 $145,000 Return on investment (ROI) 23 % 15 % % Minimum required rate of return: Percentage 13 % % 10 % Dollar amount $46,000 Residual income $6,000
Company A B C Sales $330,000 $800,000 $580,000 Net operating income $41,000 Average operating assets $160,000...
Company A B C Sales $330,000 $800,000 $580,000 Net operating income $41,000 Average operating assets $160,000 $153,000 Return on investment (ROI) 16 % 16 % % Minimum required rate of return: Percentage 14 % 20 % 14 % Dollar amount $50,000 Residual income $6,000
1.Return on investment can be increased by: a) increasing operating assets b) decreasing operating assets c)...
1.Return on investment can be increased by: a) increasing operating assets b) decreasing operating assets c) decreasing revenues 2. A problem with using residual income is that a corporation with a: a) high investment turnover ratio always has a higher residual income than a corporation with a smaller investment turnover ratio b) high return on sales always has a higher residual income than a corporation with a smaller return on sales c) larger dollar amount of assets is likely to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT