Indicate Whether Each of the Following Statements Is True or False

Short Answer

Indicate whether each of the following statements is true or false.
_____ a) Margin is calculated by dividing operating income by net income.
_____ b) Turnover is a measure of the profits generated from sales.
_____ c) Return on investment can be improved by increasing sales, decreasing expenses, or increasing the asset base.
_____ d) An increase in sales may cause a company's return on investment to increase because of the effects of fixed costs.
_____ e) Return on investment combines many aspects of managerial performance into a single ratio.