54. When measuring average operating assets, depreciable fixed assets may be included at any value except A. Gross book velue. B. Net book value. C. Current replacement value. D. Original cost less estimated salvage. LO4-Self test-D 55. The Gallagher Company is decentralized and has a required opportunity cost of capital of 20%. The West division, whose current return on investment (ROI)s 15%, Is considering an investment which will earn a return of 18%. The East Division, whose current ROI is 25%, is considering an investment which will earn a return of 22%. If the objective is to maximize ROI, each division will make the following choice: West A. Reject B. Accept C. Accept D. Reject East Accept Reject Accept Reject LO4-Self test-B 56. Supercircuits is a decentralized company and has a required opportunity cost of capital of 15%. The home computer division, whose current ROI IS 10%, is considering an investment which will earn 13% return. The gaming division, whose current ROI is 20%. Is considering an investment which will earn a 17% return. If the objective is to maximize residual income, each division will make the following choice: Computer Gaming A. Reject B. Accept C. Accept D. Reject LO4-Self test-A Accept Reject Accept Reject 57-The Hoboken Company has two divisions, North and South. In July, contribution margin for North was $126,000 and sales in the South division were S375.00 with a contribution margin ratio of 40%. Traceable fixed costs for the divisions totaled $101,000. if net operating income was $69,000, then total fixed costs must have been: A. $106,000 B. $207,000 c. $282,000 D. $170,000 LO4-Self test-B