10. Given the following: Sales = $700,000; Net operating income = $56,000; Return on investment = 20%. What is "Turnover"? 11. Assume that a company's residual income is $20,000, its return on investment is 20%, and average operating assets are $500,000. What is the minimum required rate of return? a. 10% b. 14% c. 16% d. 20%. e. 24%. Use the following information to answer questions 12 - 13: Selected sales and operating data for Division A is given below: Sales Average operating assets Net operating income Minimum required rate of return $7,000,000 $2,500,000 $475,000 15% 12. Which of the following statements are true? a. The return on investment for Division A is 19%. b. The residual income for Division A is $375,000. c. Both of the above. d. None of the above. 13. Assume that the Division A manager is presented with an investment opportunity that would yield a rate of return of 17%. Determine whether the Division A manager would accept or reject the opportunity under the two following scenarios: 1) The company evaluates its Division managers based on return on investment (ROI); 2) The company evaluates its Division managers based on residual income. Scenario 1 Scenario 2 a. Accept Accept b. Reject Reject c. Accept Reject d. Reject Accept