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Recreation Equipment Company has several divisions that are investment centers. Data for the Boat Division and the Trailer Division are shown? here: Boat Division Trailer

Recreation Equipment Company has several divisions that are investment centers. Data for the Boat Division and the Trailer Division are shown? here:

Boat Division

Trailer Division

Operating income

?$90,000

?$36,000

Total assets at Jan 1

?$670,000

?$230,000

Total assets at Dec 31

?$710,000

?$220,000

With regard to the efficient use of? assets, the Boat Division has a higher ROI? (Return on? Investment) because it has the highest operating income.

True or False?

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