16. Investment turnover is defined as: A. the ratio of sales revenue to average invested assets. B. the ratio of net operating income to average invested assets. C. the ratio of net operating income to sales revenue. D. the ratio of profit margin to return on investment. 17. Residual income is the difference between: >Residual income is the leftover money has after paying the bills for the month A. net operating income and the minimum profit the organization must earn to cover the ROI. B. net operating income minus the cost of capital for invested assets. C. net operating income and the hurdle rate. D. net operating income times the hurdle rate, less average invested assets. 18. If the ROI of a project is greater than the cost of capital, the residual income will be: A. equal to operating income. B. greater than zero. c. greater than operating income. D. greater than average invested assets. 19. Avocado Company has an operating income of $80,000 on revenues of $1,000,000. Average invested assets are $500,000, and Avocado Company has an 8% cost of capital. What is the return on investment? A. 8% B. 10% C. 16% D. 20% 20. Avocado Company has an operating income of $80,000 on revenues of $1,000,000. Average invested assets are $500,000 and Avocado Company has an 8% cost of capital. What is the profit margin? A.8% B. 10% C. 16% D. 20%