The Dry Wall Division Reports the Following Operating Data for the Past

Multiple Choice

The Dry Wall Division reports the following operating data for the past two years:
$\begin{array}{lrr}&\text { Year } 1& \text { Year } 2\\\text { Margin } & 16 \% & ? \\\text { Turnover } & 2.5 & 2.0 \\\text { Average operating assets } & ? & \$ 150,000 \\\text { Net operating income } & \$ 40,000 & ? \\\text { Stockholders' equity } & \$ 80,000 & \$ 125,000\\\text { Sales }&?&?\end{array}$


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The return on investment at the Dry Wall Division was exactly the same in Year 1 and Year 2.
Net operating income in Year 2 amounted to:

A) $60,000.
B) $50,000.
C) $40,000.
D) $35,000.