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All other things being the same, a decrease in average operating assets will decrease return on investment (ROI). True False If operating income is $83,000,

All other things being the same, a decrease in average operating assets will decrease return on investment (ROI).

True

False

If operating income is $83,000, average operating assets are $415,000, and the minimum required rate of return is 13%, what is the residual income?

$24,900

$53,950

$112,050

$29,050

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