1.

If sales and average operating assets remain the same, a company's return on investment will:

a		increase if net operating income increases.
b		decrease if net operating income decreases.
c		increase if margin decreases.
d		decrease if margin increases.

2,

1. The Mold Division of SPKY makes and sells only one product. Annual data on the Mold Divisions single product follow:

   Unit selling price	$50
   Unit variable cost	$30
   Total fixed costs	$200,000
   Average operating assets	$750,000
   Minimum required rate of return	12%

   Suppose the manager of the Mold Division desires a return on investment of 22%. In order to achieve this goal, the Mold Division must sell how many units per year?

   		14,500.
   		16,750.
   		18,250.
   		19,500.