Question

question 7 5 pts return on assets (roa) can be positively affected by: increasing prices but keeping constant volume of sales (number of units sold), total expenses and total assets. all of the answers are correct increasing prices but keeping constant volume of sales (number of units sold), total expenses and total assets. some combination of increasing net profit margins and increasing asset turnover increasing the net profit margin on each individual sale transaction without decreasing asset turnover

Explanation:

Return on assets (ROA) is calculated as Net Income / Total Assets. Increasing prices with constant sales volume, expenses and assets will increase net - income and thus ROA. Increasing net profit margins and asset turnover also positively impacts ROA as ROA can be decomposed into net profit margin times asset turnover. Increasing net profit margin per sale without decreasing asset turnover will increase net income relative to assets, boosting ROA.

Answer:

B. All of the answers are correct