Questions 4 and 5 are based on the following informatweas operations Brandon, Inc. has provided the following data tr sssss$100,000 $6,000 Net operating Income....$ Average opereting assets..$40,000 Stookholders' equity. s$25,000 10% 4. Brandon's residual income is: A. $2,000 B. $4,000 C. $3,500 D. $2,500 5. Brandon's return on investment (ROl) is: A.6% B.10% C. 15% D. 24% 6. A company that is seeking to increase ROI should attempt to decrease: CHINT: formula for ROID A. sales. B. turnover. C. margin. D. average operating assets. 7. Which of the following centers has control over expenses? I. A cost center II. An investment center III. A profit center A. Only I B. Only II C. Only I and III D. Only II and III 8. The net present value and internal rate of return methods of capital budgeting are superior to the payback method because they A. are easier to implement. B. consider the time value of money. C. require less data. D. reflect the effects of depreciation and income taxes