A company's return on investment is affected by a change in
Profit Margin
$\text {\underline{Asset Turnover } }$ $\text {\underline{on Sales } }$
A)Yes Yes
B)Yes No
C)No No
D)No Yes

Question

A company's return on investment is affected by a change in
                                         Profit Margin
$\text {\underline{Asset Turnover } }$       $\text {\underline{on Sales } }$
A)Yes Yes
B)Yes No
C)No No
D)No Yes

Quizplus · Accepted Answer

Both profit margin and asset turnover on sales affect return on investment. A high profit margin means that the company is earning more profit per dollar of sales, and a high asset turnover ratio means that the company is efficiently using its assets to generate sales. Together, these factors contribute to a higher return on investment.

A Company's Return on Investment Is Affected by a Change Asset Turnover ‾ \text {\underline{Asset Turnover } }Asset Turnover ​

A Company's Return on Investment Is Affected by a Change $\text {\underline{Asset Turnover } }$