Return-on-investment (ROI) is a term often used to express income earned on capital
invested in a business unit. A company’s ROI will increase if:

Correct answer: (B)

By calculation. One way to solve this problem is to simply set up a basic ROI of, for example,
($500,000 - $400,000) / $400,000 = 0.25 and then go through the choices changing these figures outlined in each option. ($500,000 - $350,000) / $450,000 = 0.33.