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$ 4,000,000 75% of sales $12,000,000 Sales Variable costs Average assets employed Fixed costs How would each of the following measures be affected if sales rise by $5,000 0

$ 4,000,000 75% of sales $12,000,000 Sales Variable costs Average assets employed Fixed costs How would each of the following measures be affected if sales rise by $5,000 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Based on the attached image, how would each of the following measures be affected if sales rise by $5,000?

a. ROI: increase; Asset turnover: increase; Profit margin: increase

b. ROI: decrease; Asset turnover: decrease; Profit margin: decrease

c. ROI: increase; Asset turnover: decrease; Profit margin: increase

d. ROI: increase; Asset turnover: increase; Profit margin: no change

$ 4,000,000 75% of sales $12,000,000 Sales Variable costs Average assets employed Fixed costs How would each of the following measures be affected if sales rise by $5,000 0
Transcribed Image Text:$ 4,000,000 75% of sales $12,000,000 Sales Variable costs Average assets employed Fixed costs How would each of the following measures be affected if sales rise by $5,000 0
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