Since the sales figure is neutral in the return on investment (ROI)formula,ROI = Margin x Turnover,a change in total sales will NOT affect ROI.

Name: Since the sales figure is neutral in the return on investment (ROI)formula,ROI = Margin x Turnover,a change in total sales will NOT affect ROI.
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Question

Quizplus · Accepted Answer

Total sales is a component of turnover in the ROI formula, and turnover is a key factor in determining ROI. Therefore, a change in total sales will affect turnover and ultimately impact ROI.

Since the Sales Figure Is Neutral in the Return on Investment