Question 6 4 pts

Which of the following would most likely be evaluated using return on income?

cost center

revenue center

profit center

investment center

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Question 7 4 pts

The following information is available for our company for the current year:

• operating income, $75,000;
• average total assets, $500,000;
• net sales, $750,000; and
• required rate of return, 12%.

Calculate the return on investment (ROI) rounded to two decimal places.

6.67%

10.00%

15.00%

16.67%

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Question 8 4 pts

The following information is available for our company for the current year:

• operating income, $75,000;
• average total assets, $500,000;
• net sales, $750,000; and
• required rate of return, 12%.

Calculate the profit margin to two decimal places.

6.67%

10.00%

15.00%

16.67%

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Question 9 4 pts

The following information is available for our company for the current year:

• operating income, $45,000;
• average total assets, $400,000;
• net sales, $900,000; and
• required rate of return, 12%.

Calculate the asset turnover to two decimal places.

2.25 times

4.44 times

5.00 times

8.89 times

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Question 10 4 pts

The following information is available for our company for the current year:

• operating income, $45,000;
• average total assets, $400,000;
• net sales, $900,000; and
• required rate of return, 12%.

Calculate residual income.

($3,000)

$3,000

$45,000

$48,000

Please answer all the question for the exam