Recreation Equipment Company Has Several Divisions That Are Investment Centers

True/False

Recreation Equipment Company has several divisions that are investment centers.Data for the Boat Division and the Trailer Division are shown here:
$$\begin{array} { | l | r | r | } \hline & \text { Boat Division } & \text { Trailer Division } \\\hline \text { Operating income } & \$ 75,000 & \$ 40,000 \\\hline \text { Total assets at Jan. 1 } & \$ 694,000 & \$ 234,000 \\\hline \text { Total assets at Dec. 31 } & \$ 700,000 & \$ 218,000 \\\hline\end{array}$$ With regard to the efficient use of assets,the Boat Division has a higher return on investment (ROI)because it has the highest operating income.