Which of the following statements is true?

Return on investment $($ROI$)$ equals margin multiplied by sales.

When used in return on investment $($ROI$)$ calculations, turnover equals sales divided by average operating assets.

An advantage of using ROI to evaluate performance is that it encourages the manager to reduce the investment in operating assets as well as increase net operating income.

Multiple Choice

Both statements $1$ and $2$ are true.

Both statements $2$ and $3$ are true.

All of the statements are true.

None of the statements are true.