If the asset turnover decreased by 20% and profit margin decreased also by 20%, the ROI would a. cannot be ascertained b. increase by 30%. c. decrease by 36% d. decrease by 20%. e. decrease by 44%
If the asset turnover decreased by 20% and profit margin decreased also by 20%, the ROI would a. cannot be ascertained b. increase by 30%. c. decrease by 36% d. decrease by 20%. e. decrease by 44%
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
Section: Chapter Questions
Problem 21E: If sales and average operating assets for Year 2 are identical to their values in Year 1, yet...
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If the asset turnover decreased by 20% and profit margin decreased also by 20%, the ROI would
a. cannot be ascertained
b. increase by 30%.
c. decrease by 36%
d. decrease by 20%.
e. decrease by 44%
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