Answer:
I, II, and IV
Explanation:
Profit margin gives profit/sales, profit will increase with reduction in cost hence this ratio will get impacted.
Return on assets gives profit /average total assets, since profits will increase with reduction in cost this ratio will be impacted.
Return on equity gives profit/Equity, hence this ratio will be impacted.
Therefore, This cost improvement will increase which of the following:
1. Profit Margin
2. Return on assets
3. Return on equity
