BGL Enterprises increases its operating efficiency such that costs decrease while sales remain constant.As a result, given all else constant, the:

Question

Quizplus · Accepted Answer

Increased operating efficiency that leads to cost decrease while sales remain constant will result in an increase in profitability. Since return on equity is a measure of profitability, it will increase. The return on assets, profit margin, equity multiplier, and price-earnings ratio are not directly impacted by changes in operating efficiency.

BGL Enterprises Increases Its Operating Efficiency Such That Costs Decrease