TRUE or FALSE? All else constant, an increase in inventories will lead to a decrease in Return on Investment (ROI). O True False TRUE or FALSE? Suppose a company evaluates divisional performance using both ROI and residual income. The company's minimum required rate of return for the purpose of residual income calculations is 12%. If a division has a residual income of $6,000, then the division's ROI is greater than 12%. True False All else constant, which of the following would increase a division's residual income? Increase in expenses Decrease in average operating assets Increase in minimum required rate of return Decrease in operating income None of the above would increase a division's residual income Last year a company had sales of $2,160,000, a turnover of 3.6, and a return on investment of 18%. The company's operating income for the year was: $166,667 O $108,000 $30,000 O $15,000 O None of the above