Reference: 12-07
the Following Selected Data Pertain to the Belt

Multiple Choice

Reference: 12-07
The following selected data pertain to the belt division of Allen Corp. for last year: $$\begin{array} { | l | l | } \hline \text { Sales } & \$ 500,000 \\\hline \text { Average operating assets } & \$ 200,000 \\\hline \text { Net operating income } & \$ 80,000 \\\hline \text { Turnover } & 2.5 \\\hline \text { Minimum required return } & 20 \% \\\hline\end{array}$$
-Keeping all other factors constant, which of the following would not cause an increase in the ROI?

A) Increase in liabilities.
B) Reduction in expenses.
C) Reduction in operating assets.
D) Increase in sales.