Assume Sad Times Company is an investment center and provided the following information about performance this last year. The parent company's required rate of return on investments is 7% Operating Assets (Beginning of Year) $325,000 Operating Assets (End of Year) $ 275.000 Net Operating Income $ 60,000 Sales $ 1.000.000 What is Sad Times Company's residual income? O ($240,000) O $ 940,000 O $39.000 O $ 979,000 Jane is a manager for ABC company. Jane is a manager with control over costs, but not revenues nor the use of investment funds. What is the corre name for Jane's responsibility center? Cost Center Proht Center Investment Center 31.2: D Question 38 All other things equal, which of the following would increase a division's residual income? Increase in minimum required return Decrease in average operating assets. Decrease in net operating income. Increase in expenses. When used in return on investment (ROI) calculations, turnover equals sales divided by average operating assets. True O False Some Investment opportunities that should be accepted from the viewpoint of the entire company may be rejected by a manager who is evaluated on the basis of residual income retum on investment