5 5 Q9: ROLF Corporation has invested $24,000,000 and wants to earn a return of 25%. They plan to produce 7 500,000 units next year with costs of $40 per unit. What return on investment (ROI) do they plan to have per unit? B 9 A) $10 B) $12 1 C) $40 2 D) $52 3 4 5 5 Q10: CinRich Corporation recorded operating data for its Waterhole division for the year. CinRich requires its return to be 9%. $500,000 7 Sales B Controllable margin $ 90,000 9 Total average assets $ 300,000 20 Fixed costs $ 30,000 01 Residual income $ 50,000 02 How much is ROI for the year? 03 04 05 06 A) 20% B) 30% C) 16.7% D) 10% 07 08 09 Q11: Waterloo Company earned controllable margin of $125,000 on sales of $1,600,000. The division had 10 average operating assets of $1,300,000. The company requires a return on investment of at least 8%. How 11 much is residual income? 2345 A) $146,000 B) $104,000 C) $21,000 D) $128,000 16