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7. All other things the same, which of the following would increase A. Increase in average operating assets B. Decrease in average operating assets. C.

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7. All other things the same, which of the following would increase A. Increase in average operating assets B. Decrease in average operating assets. C. Increase in minimum required returm. D. Decrease i n net operating income. 48. Which o the following three statements are correct? I. A profit center has control over both cost and revenue. Il. An investment center has control III. A cost center has no control over sales over invested funds, but not over costs and revenue. A. Only I B. Only II C. Only I and II1 D. Only I and II 49. The purpose of the Data Processing Department of Falena Corporation is to assist the various departments of the corporation with their information needs free of charge. The Data Processing Department would best be evaluated as a: A. cost center. B. revenue center C. profit center. D. investment center. 50. Average operating assets are $110,000 and net operating income is $23,100. The company invests $25,000 in new assets for a project that will increase net operating income by $4,750. What is the return on investment (ROI) of the new project? A. 21% B.19% C. 18.5% D. 20% E. 10% 51. A company's company's target current net operating income is $16,800 and its average operating assets are $80,000. The rate of return is 18%. A new project being considered would require an investment of $15,00 and would generate annual net operating income of $3,000. What is the residual income of the new project? A. 20.8% B. 20% C. ($150) D. $300 E. $540

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