Reference: 12-12
the Sherlock Division Recorded Operating Data as Follows

question 19

Multiple Choice

Reference: 12-12
The Sherlock Division recorded operating data as follows for the past year: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 300,000 \\\hline \text { Operating expenses } & 225,000 \\\hline \text { Average operating assets } & 225,000 \\\hline \text { Stockholders' equity } & 80,000 \\\hline \text { Minimum required rate of return } & 20 \% \\\hline\end{array}$$
-All other things being equal, a company's return on investment (ROI) would generally increase when:

• A)average operating assets increase.
• B)sales decrease.
• C)operating expenses increase.
• D)operating expenses decrease.

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