3 If the return on investment for a division is 12% and the minimum required rate of return is 15%, the residual income would be negative positive zero For the current year, our Division's return on investment (ROI) is 20% Which of the following would increase ROI next year? Net operating income and average operating assets increase by the same dollar amount Net operating income and average operating assets increase by the same percentage Both of the above None of the above Assume that a company's residual income is $20,000, its retum on investment is 20%, and average operating assets are $500,000. What is the minimum required rate of return? 10% 14% 16% 20% 24% Consider the following for Division A: Sales = $7,000,000 Average operating assets = $2,500,000 Net operating income $475,000 Minimum required rate of return = 15%. I What is the return on investment (ROI)? 4 6.8% 15% 19% None of the above 1 O E