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

Reference: 12-12
The Sherlock Division recorded operating data as follows for the past year: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 300,000 \\\hline \text { Operating expenses } & 225,000 \\\hline \text { Average operating assets } & 225,000 \\\hline \text { Stockholders' equity } & 80,000 \\\hline \text { Minimum required rate of return } & 20 \% \\\hline\end{array}$$
-In computing the margin in a ROI analysis, which of the following is used in the denominator?

A) Net operating income.
B) Residual income.
C) Average operating assets.
D) Sales.