1. True or False : When used in return on investment (ROI) calculations, operating assets do not include investments in land held for future use and investments in other companies.

2. True or False : All other things being the same, a decrease in average operating assets will decrease return on investment (ROI).

3. True or False : Residual income should not be used to evaluate a profit center.

4. Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below:

Sales	$24,000,000
Net operating income	$1,752,000
Average operating assets	$6,000,000

The division's margin is closest to:

a. 32.3%

b. 25.0%

c. 29.2%

d. 7.3%