In the Dupont Model for calculating ROI, which of the following components appears on both the margin side of the expression and the asset turnover side?
A)Operating income
B)Sales revenue
C)Average operating assets
D)Segment margin

Question

Quizplus · Accepted Answer

Sales revenue is included on both the margin side and the asset turnover side of the Dupont Model formula, as it is a key component in calculating both the profit margin and asset turnover ratios. Operating income and segment margin appear only on the margin side, while average operating assets appear only on the asset turnover side.

In the Dupont Model for Calculating ROI, Which of the Following