Question

Which of the following will cause an increase in ROI? An increase in controllable fixed costs. An increase in average operating assets. An increase in sales. An increase in variable costs.

Answer 1

Answer:

3. An increase in sales.

Explanation:

This is true due to the effect it would have on the product in question which would lead to return on the investment. For example, a particular product sells 400pcs each month. In subsequent month, it started selling 900pcs each month. This increase in sales will lead to great return in the investment made by the company regarding to that particular product.