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

question 16

True/False

$$\text { Reference: } 12 - 10$$ Harstin Corporation has provided the following data: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 625,000 \\\hline \text { Gross margin } & 70,000 \\\hline \text { Net operating income } & 50,000 \\\hline \text { Stockholders' equity } & 90,000 \\\hline \text { Average operating assets } & 250,000 \\\hline \text { Residual income } & 20,000 \\\hline\end{array}$$
-Since the sales figure is neutral in the return on investment (ROI)formula ROI = Margin
× Turnover, a change in total sales will not affect ROI.

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