A division's return on investment may be improved by increasing:

A. capital turnover or sales margin.

B. sales margin and cost of capital.

C. cost of goods sold and expenses.

D. capital turnover or cost of capital.

E. sales revenue and cost of capital.

Question

Jamya Fischer

Business

3 January, 21:04

A division's return on investment may be improved by increasing:

A. capital turnover or sales margin.

B. sales margin and cost of capital.

C. cost of goods sold and expenses.

D. capital turnover or cost of capital.

E. sales revenue and cost of capital.

+2

Answers (1)

Know the Answer?

Matthew Hicks · Answer 1

The correct answer is letter "A": capital turnover or sales margin.

Explanation:

Return on Investment, or ROI, measures the amount of return on an investment relative to the cost of investment. The return of an investment is divided by its cost to calculate ROI. The result is expressed as a percentage or as a ratio. Investments with positive ROI are likely to be successful while those with negative figures are possible to end up in losses.

To increase a division's ROI, the firm can increase the capital turnover (capital assets that allow the company to profit) or the sales margin (the difference between costs and the net profit of selling a unit of a product).

A division's return on investment may be improved by increasing:A. capital turnover or sales margin.B. sales margin and cost of capital.C. cost of goods sold and expenses.D. capital turnover or cost of capital.E. sales revenue and cost of capital.

A division's return on investment may be improved by increasing:

A. capital turnover or sales margin.

B. sales margin and cost of capital.

C. cost of goods sold and expenses.

D. capital turnover or cost of capital.

E. sales revenue and cost of capital.