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 Reference: 1210\text { Reference: } 12 - 10 Harstin Corporation Has Provided the Following Data

Question 8

Multiple Choice

 Reference: 1210\text { Reference: } 12 - 10 Harstin Corporation has provided the following data:  Sales $625,000 Gross margin 70,000 Net operating income 50,000 Stockholders’ equity 90,000 Average operating assets 250,000 Residual income 20,000\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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