Requirement 2:

Revise the data in your worksheet as follows:

If your formulas are correct, you should get the correct answers to the following questions.

a. What is the ROI?

b. What is the residual income? (Negative amount should be indicated by a minus sign.)

c. Why is the residual income positive? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

• The ROI is less than the minimum required rate of return.unanswered
• The ROI exceeds the minimum required rate of return.unanswered
• Average operating assets exceed net operating income.unanswered
• Sales exceed average operating assets.unanswered
• Sales exceed net operating income.unanswered
• The ROI equals the minimum required rate of return.
• "Data" B
• Sales= 30,000,000
• Net Operating income= 1,800,000
• Average Operating assets= 6,000,000
• Minumun requerided rate of return= 26%