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Investment Center Evaluation and Transfer Pricing ABC Companv provided the following income statement for the last year. Sales $240,000 Less: variable expenses $195,000 Contribution margin

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Investment Center Evaluation and Transfer Pricing ABC Companv provided the following income statement for the last year. Sales $240,000 Less: variable expenses $195,000 Contribution margin $45,000 Less: fixed expenses $37,000 Operating income $7,200 At the beginning of last year, ABC had 578,650 in operating assets. At the end of the year, ABC had $81,350 in operating assets. Required: a. Compute average operating assets b. Compute the margin and turnover ratio. Compute RII. c. Explain the advantages and disadvantages of using ROI as the only measure of managerial performance of an investment centerl

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