Which of the following is true?

ROI is the primary basis for evaluating profit and investment centre managers.

Increasing the average operating assets can increase ROI.

Increasing either controllable margin or the average operating assets can raise ROI.

When ROI is calculated, management would prefer a high percentage.

Bramble Foods calculated the following ROIs for two potential investments. Brambles required rate of return is 10.30%.

Investment A	13.90%
Investment B	8.60%

Which of the following should Bramble choose?

Investment A.

Investment B.

Both, since both investments generate a positive return.

It depends on which investment generates the larger profits.