Question

If selling and administrative expenses decrease while other expenses remain​ constant, what will happen to return on investment​ (ROI)?

Answer 1

The ROI will increase.

Step-by-step explanation:

ROI ( Return on investment ) is concept which is used by the management of a corporation to evaluate a project and to see how profitable a project would be and on the basis of profitability, that project would be accepted or rejected. If the selling and administrative expenses decreases , given that other expenses remains same, it means that there will be decrease in operating expenses, which means the ROI would increase.