For each of the following scenarios, determine whether the specified variable would increase, decrease, or remain the same. Explain your choice.
1. If sales and average operating assets for Kayman Company for Year 2 are identical to their values in Year 1, yet operating income is higher, ROI for Year 2 will __________.

2. Amy Company budgeted sales of $450,000, operating expenses of $310,000, and average operating assets of $1,000,000. At the end of the year, operating expenses had risen, while sales and average operating assets remained the same. What happened at the end of the year to margin, turnover, and ROI? (Did each increase, decrease, or remain the same?)
3. If margin increased over the course of the year and average operating assets decreased, what happened to turnover? ROI?
4. If sales, operating expenses, and average operating assets all stayed constant from Year 1 to Year 2, and minimum required rate of return increased, what happened for Year 2 to margin, turnover, ROI, and residual income? (Did each increase, decrease, or remain the same?)