Continental Publishing Company
the Magazine Division of Continental Publishing Company

Multiple Choice

Continental Publishing Company
The Magazine Division of Continental Publishing Company had the following financial data for the year:
$\begin{array}{ll}\text { Assets available for use } & \$ 1,000,000 \text { Book Value } \\& \$ 1,500,000 \text { Market } V \text { alu } \\\text { Residual income } & \$ 100,000\\\text { Return on innvestment } & 15\%\end{array}$

Refer to Continental Publishing Company.If expenses increased by $20,000 in the Magazine 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.