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The Dry Wall Division reports the following operating data for the past two years: Year 1 Year 2 Margin 15% ? Asset Turnover 3.8 3

The Dry Wall Division reports the following operating data for the past two years:

Year 1 Year 2

Margin 15% ?

Asset Turnover 3.8 3

Average Operating Assets ? $156500

Net Operating Income $45900 ?

Stockholder's Equity $86500 $118500

Sales ? ?

The return on investment at the Dry Wall Division was exactly the same in Year 1 and Year 2.

Net Operating income in Year 2 amount to :

A. $70,425

B. $89,205

C. $45900

D. $38000

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