Thunder Sports Enterprises
the Basketball Division of Thunder Sports Enterprises

Thunder Sports Enterprises
The Basketball Division of Thunder Sports Enterprises reported the following financial data for the year:
$\begin{array}{ll}\text { Assets available for use } & \$ 1,200,000 \text { Book Value } \\& \$ 1,500,000 \text { Market } V \text { alu } \\\text { Residual income } & \$ 108,000\\\text { Return on innvestment } & 14\%\end{array}$

Refer to Thunder Sports Enterprises.If expenses increased by $15,000 in the Basketball Division,

A) return on investment would decrease.
B) residual income would increase.
C) the target rate of return would decrease.
D) asset turnover would decrease.