Which of the following will not result in an increase in both return on investment and residual
Income?
A) An increase in the unit selling price.
B) A decrease in variable manufacturing costs.
C) A decrease in property, plant, and equipment.
D) A decrease in the minimum required rate of return.

Question

Quizplus · Accepted Answer

A decrease in the minimum required rate of return will increase residual income but not necessarily affect the return on investment, as ROI is calculated based on actual returns, not the required rate.

Which of the Following Will Not Result in an Increase