Question
14. Select the correct answer. Julie's Jewels has a net operating income of $55,000 and average operating assets of $550,000. The required rate of return
14. Select the correct answer. Julie's Jewels has a net operating income of $55,000 and average operating assets of $550,000. The required rate of return for the company is 15%. What is the divisions R O I?
a. 15% b. 110% c. 10 times d. 10%
15. Select the correct answer. Julie's Jewels has a net operating income of $55,000 and average operating assets of $550,000. If the manager of the division is evaluated based on ROI, will she want to make an investment of $60,000 that would generate additional net operating income of $20,000 per year?
a. Yes b. The change does not matter c. No
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