Asked by Derek Lehan on Jul 20, 2024
Verified
All other things the same, an increase in unit sales will normally result in an increase in the return on investment.
Return On Investment
A performance measure used to evaluate the efficiency of an investment or compare the efficiency of multiple investments.
Unit Sales
The volume of product units sold by a company in a specific period.
- Master the employment and significance of return on investment (ROI) in the appraisal of managerial success.
- Acquire understanding of how alterations in sales influence margin and turnover.
Verified Answer
MS
mandeep sandhuJul 24, 2024
Final Answer :
True
Explanation :
An increase in unit sales will result in higher revenue, which can increase the return on investment if the costs don't increase proportionally. However, if the costs also increase in proportion to the sales, the return on investment may not increase or may even decrease.
Learning Objectives
- Master the employment and significance of return on investment (ROI) in the appraisal of managerial success.
- Acquire understanding of how alterations in sales influence margin and turnover.
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