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The firm has investment centers. The firm evaluates the performance of each investment center manager by using return on investment (ROI). ROI = Operating profit

The firm has investment centers. The firm evaluates the performance of each investment center manager by using return on investment (ROI). ROI = Operating profit / Operating assets. One investment center sold its machines to replace them with the new ones. As a result, it has gain on sale of tangible assets. Should this be included in operating profit? Why?

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