If sales and average operating assets for year 2 are identical to their values in year 1,
Question:
If sales and average operating assets for year 2 are identical to their values in year 1, yet operating income is higher, year 2 return on investment (compared with year 1 ROI) will
a. increase.
b. decrease.
c. stay the same.
d. The direction of change in ROI cannot be determined by this information.
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The correct answer is d The direction of change in ...View the full answer
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Related Book For 
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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