Question
Rose Company has sales of $1,200,000 and operating assets of $800,000 and achieved a 10 percent ROI. If Rose Company increases expenses by $20,000 and
Rose Company has sales of $1,200,000 and operating assets of $800,000 and achieved a 10 percent ROI.
If Rose Company increases expenses by $20,000 and sales remain unchanged, what ROI will result?
| a. | 10%. | |
| b. | 7.5% | |
| c. | 14.5%. | |
| d. | Not able to be calculated from the information provided. |
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Governmental And Nonprofit Accounting Theory And Practice
Authors: Robert J Freeman, Craig D Shoulders, Gregory S Allison, Terry K Patton, Robert Smith,
9th Edition
0132552728, 9780132552721
