If the profit margin percentage of 30% stayed the same and the investment turnover ratio of 5.0 increased by 10%,what would happen to ROI?
A)increase by 10%
B)decrease by 10%
C)increase by 15%
D)remain the same

Question

Quizplus · Accepted Answer

The ROI (Return on Investment) is calculated as the product of the profit margin percentage and the investment turnover ratio. If the profit margin remains the same and the investment turnover ratio increases by 10%, the ROI would increase by the same percentage as the increase in the investment turnover ratio, which is 10%.

If the Profit Margin Percentage of 30% Stayed the Same