2. True or False : In computing residual income, expenses incurred in operating corporate headquarters should be allocated to the separate divisions on the basis of the contribution margins of the divisions.
3. If sales and average operating assets remain the same, a company's return on investment will:
4. The Sherlock Division recorded operating data as follows for the past year:
|Average operating assets||225,000|
|Minimum required rate of return||20%|
For the past year, the margin was?
5. Which of the following is not an operating asset?