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Last year, Tiana's Place, Inc. generated sales revenue of $272,250 and reported $15,246 in operating income. The company's invested capital at year end was $75,000.
Last year, Tiana's Place, Inc. generated sales revenue of $272,250 and reported $15,246 in operating income. The company's invested capital at year end was $75,000. Which of the following statements is incorrect? For every dollar of sales revenue generated, the company earned $0.56 in operating income. The company could improve its return on investment by increasing its sales margin. If the company's hurdle rate is less than its return on investment, the company would report a positive residual income. For every dollar of capital invested, the company earned approximately $0.20 in operating income. For every dollar of capital invested, the company generated $3.63 in sales revenue
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