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Midwest Communications Company (MCC) operates an internet and communications network in several cities in the Midwest. Division managers at MCC are evaluated annually based on

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Midwest Communications Company (MCC) operates an internet and communications network in several cities in the Midwest. Division managers at MCC are evaluated annually based on their division's return on investment (ROI). The Cincinnati Division reported the following data for the most recent year: Revenue $2,200,000 $8,000,000 Investment in assets Operating expenses Required rate of return $1,100,000 10% per year What was the Cincinnati Division's return on investment last year? O 10.00% 13.75% 14.25% 14.7596 None of the above TRUE or FALSE: A profit center is responsible for generating revenue but not responsible for controlling its costs. True O False The following data are available for the Southern Division at BTLR Corporation for the most recently completed period: Revenue $320,000 Variable costs $250,000 Fixed costs $50,000 Average operating $110,000 assets Required rate of 10% return What is BTLR's return on sales in the Southern Division? 16.75% O 10.00% O 6.25% 22.25% None of the above SLG Corporation uses average operating assets for performance measurement purposes. If SLG Corporation's sales revenue and average operating assets for Year 2 are the same as Year 1, but operating income is lower in Year 2, then SLG's Year 2 return on investment (compared with Year 1 ROI) will be: O higher lower O the same O the direction of the change in ROI cannot be determined from the information provided

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