1. Xiao Miao Company had Average Operating Assets of $2,000,000 and sales of $1,000,000 in 2011. If the Controllable Margin was $300,000, the ROI (Return on investment) was

A) 60%

B) 50%

C) 30%

D) 15%

2. Lao Shoo Bruce Company had Average Operating Assets of $4,000,000 and sales of $2,000,000 in 2011. Lithe Controllable Margin was $400,000, the ROI (Return on Investment) was

A) 50%

B) 40%

C) 20%

D) 10%

3. King Louis MV Corporation recorded operating data for its cheap division for the year. King Louis XIV requires its return to be 10%.

Sales $700,000

Controllable margin 80,000

Average Operating Assets 1,000,000

Fixed costs 50,000

What are the ROI (Return on Investment) for the year?

A) 8%

B) 70%

C) 5%

D) 3%

4. Emperor Napoleon Company had Sales of $400,000, Variable Costs of $200,000, and Direct Fixed Costs totaling $100,000. The company's Average Operating Assets total $800,000, and its required return is 10%. How much is the Residual Income (RI)?

A) $120,000

B) $20,000

C) $80,000

D) $320,000

5. Old and Feeble Minded Professor Mullen's Company earned Controllable Margin of $250,000 on Sales of $3,200,000. The division had. Average Operating Assets of $2,600,000. The company requires a Return on Investment of at least 8%. How much is Residual Income (RI)?

A) $208,000

B) $42,000

C) $292,000

D) $256,000