Question 8 3.33 pts Which of the following statements is not true with respect to the simple rate of return? The annual incremental net operating income included in the numerator should be reduced by the depreciation expense that results from making the investment. The initial investment included in the denominator should be reduced by the salvage value of the new equipment. The annual incremental net operating income included in the numerator should include the incremental revenues that result from making the investment. The initial investment included in the denominator should include the cash outlay associated with the investment. It is not possible to compute the simple rate of return if annual cash flows are unequal. 3.33 pts Question 16 Which statement is true regarding divisional performance? O If a division's return on investment is less than its margin, then the division's sales are greater than its average operating assets. O A reduction in selling and administrative expenses increases a division's margin but does not increase its return on investment if the division's turnover is less than one. Olfa division's retum on investment is greater than its margin, then the division's sales are less than its average operating assets. O An increase in labor costs will reduce a division's margin and its return on investment even if the division's turnover is less than one