Question 1

Johanssen Company reported the following information for 2012:

Sales	$802,000
Average Operating Assets	$390,000
Desired ROI	15%
Residual Income	$ 12,000

The company's operating income for 2012 was:

A. $58,500.

B. $120,300.

C. $46,500.

D. $70,500.

Question 2

Home Town Grocery has invested in yogurt stands for its stores. The investment cost the company $100,000. Variable materials, preparation, and marketing costs are expected to be $1.25 a unit and fixed costs are estimated at $7,300 a year. If actual sales were 21,300 servings, what would the ROI be at a sales price of $2.35? (Round your final answer to 2 decimal places.)

A. 42.76%

B. 16.13%

C. 23.43%

D. 36.26%