36. Which of the following describes the computation of ROI?

a. Return on Sales x Investment

b. Investment Turnover x Return on Sales
c. Income - (Investment x Minimum RI)
d. Sales x Investment Turnover

b 37. If the investment turnover increased by 20% and ROS decreased by 30%, the ROI would
a. increase by 20%.
b. decrease by 16%.
c. increase by 4%.
d. none of the above.

b 38. Scottso Division has the following results for the year:

Revenues $1,080,000
Variable expenses 440,000
Fixed expenses 400,000

Total divisional assets are $1,600,000. The company's minimum required rate of return is 14 percent. Residual income for Scottso is
a. $(64,000).
b. $16,000.
c. $151,200.
d. $224,000.

c 39. Scottso Division has the following results for the year:

Revenues $1,080,000
Variable expenses 440,000
Fixed expenses 400,000

Total divisional assets are $1,600,000. The company's minimum required rate of return is 14 percent. Return on investment for
Scottso is
a. 54%.
b. 18%.
c. 15%.
d. 10%.

b 40. Monrovia Division has net income of $240,000 on sales of $3,200,000. If the investment is $1,600,000 what is ROS?
a. 15.0%
b. 7.5%
c. 10.0
d. 2.0

c 41. Scottso Division has the following results for the year:

Revenues $1,080,000
Variable expenses 440,000
Fixed expenses 400,000

Total divisional assets are $1,600,000. The company's minimum required rate of return is 14 percent. Return on sales for Scottso is
a. 1.5%.
b. 15.0%.
c. 22.2%.
d. 67.5%.

d 42. Monrovia Division has net income of $240,000 on sales of $3,200,000. If the investment is $1,600,000 what is asset turnover?
a. 15.0%
b. 7.5%
c. 10.0
d. 2.0

a 43. Monrovia Division has net income of $240,000 on sales of $3,200,000. If the investment is $1,600,000 what is ROI?
a. 15.0%
b. 7.5%
c. 10.0
d. 2.0