Answered: ratio should the board members be…

Business

Accounting

ratio should the board members be looking for to see if their apprehensions are justified

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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Question

Pls help...

Your corporation is presenting its financial results for the year to the board of directors. You have created a model of premium service that have increased profit margins. However, the board members are concerned that this has been achieved by adding more staff instead of better use of technology compared to your competitors. What ratio should the board members be looking for to see if their apprehensions are justified?

Group of answer choices

SG&A/Sales

ROIC/Sales

Return on sales

PPE/Sales

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