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Astin Ltdrequires All of Its Divisions to Maintain a Return on on Investment

Question 57

Multiple Choice

Astin Ltd.requires all of its divisions to maintain a return on investment (ROI) of at least 25 per cent.Over the past several years,one of Astin's divisions has consistently had the following information:
Sales $2000000Net operating income 500000\begin{array}{lr} \text {Sales } &\$2000000\\ \text {Net operating income } &500000\\\end{array}

In order to achieve the company's ROI goals,this division should do which of the following?


A) Maintain average operating assets of $2 000 000 or more.
B) Maintain average operating assets of $2 000 000 or less.
C) Maintain average operating assets of $125 000 or more.
D) Maintain average operating assets of $125 000 or less.

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