$$\text { Reference: } 12 - 10$$ Harstin Corporation Has Provided the Following Data

question 44

Multiple Choice

$$\text { Reference: } 12 - 10$$ Harstin Corporation has provided the following data: $$\begin{array} { | l | c | } \hline \text { Sales } & \$ 625,000 \\\hline \text { Gross margin } & 70,000 \\\hline \text { Net operating income } & 50,000 \\\hline \text { Stockholders' equity } & 90,000 \\\hline \text { Average operating assets } & 250,000 \\\hline \text { Residual income } & 20,000 \\\hline\end{array}$$
-Assuming that sales and net operating income remain the same, a company's return on investment will:

• A)decrease if turnover decreases.
• B)decrease if turnover increases.
• C)increase if average operating assets increase.
• D)decrease if average operating assets decrease.

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Definitions:

Bartering

An exchange of goods or services between parties without the use of money.

Marketing Plan

A comprehensive document or blueprint that outlines a business's advertising and marketing efforts for a specific period.

Stakeholders

Individuals, groups, or organizations that have an interest or stake in the outcome of a project, initiative, or company's operations, including employees, customers, investors, and suppliers.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by massive unemployment and widespread poverty.