6. Xiao Miao Company had Average Operating Assets of $2,000,000 and sales of $1,000,000 in 2011. If the Controllable Margin was $300,000, the ROI (Return on Investment) was A)60% B) 50% C)30% D) 15% 7. Lao Shu Bruce Company had Average Operating Assets of $4,000,000 and sales of $2,000,000 in 2011. If the Controllable Margin was $400,000, the ROI (Return on Investment) was A) 50% B) 40% C)20% D) 10% 8. King Louis XIV Corporation recorded operating data for its Cheap division for the year. King Louis XIV requires its return to be 10%. Sales Controllable margin Average Operating Assets ,000,000 $ 700,000 80,000 Fixed costs What is the ROI (Return on Investment) for the year? A)8% B)70% C)5% D) 3% 50,000 9. Emperor Napoleon Company had Sales of $400,000, Variable Costs of $200,000, and Direct Fixed Costs totaling S100,000. The company's Average Operating Assets total $800,000, and its required return is 10%. How much is the Residual Income (RI)? A) $120,000 B) $20,000 C) $80,000 D) $320,000 10. Old and Feeble Minded Professor Mullen's Company earned Controllable Margin of $250,000 on Sales of $3,200,000. The division had Average Operating Assets of $2,600,000. The requires a Return on Investment of at least 8%. How much is Residual Income(RI)? A) $208,000 B) $42,000 C) $292,000 D) $256,000 company Page 2