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33) Which of the following measures of performance encourages continued expansion by an investment center so long as it is able to earn a return
33) Which of the following measures of performance encourages continued expansion by an investment center so long as it is able to earn a return in excess of the minimum required return on average operating assets? A) transfer pricing C) the contribution approach B) residual income D) return on investment 34) Othman Inc. has a $800,000 investment opportunity with the following characterist Sales Contribution margin ratio Fixed expenses 2,240,000 50 % of sales $ 1,008,000 The margin for this investment opportunity is closest to A)50.0% B)45.0% d) 55.0% D) 5.000 35) BR Company has a contribution margin of 40%. Sales are $312,500, net operating income is $25,000, and average operating assets are $200,000. What is the company's return on investment (ROI)? A)64.0% B) 12.5% C)8.090 D) 62.5% 36) Mike Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 14%. In January, the Commercial Products Division had average operating assets of $970,000 and net operating income of $143,700. What was the Commercial Products Division's residual income in January? A) $7,900 B) $20,118 C) ($20,118) D) ($7,900)
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