ACCT 505 WEEK 6 QUIZ-2

ACCT 505 WEEK 6 QUIZ-2 Grade Details - All Questions 1. Question : (TCO D) A company that has a profit can increase its return on investment by Student Answer: increasing sales revenue and operating expenses by the same dollar amount. increasing average operating assets and operating expenses by the same dollar amount. increasing sales revenue and operating expenses by the same percentage. decreasing average operating assets and sales by the same percentage. Instructor Explanation: Chapter 12 Points Received: 5 of 5 Comments: 2. Question : (TCO D) Given the following data, what would ROI be? Sales $50,000 Net operating income $5,000 Contribution margin $20,000 Average operating assets $25,000 Stockholder's equity $15,000 Student Answer: 10% 20% 16.7% 80% Instructor Explanation: See Chapter 12. ROI = Net operating income / Average operating assets = $5,000 / $25,000 = 20.0% Points Received: 5 of 5