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37) Which of the following would not be included in operating assets in return on investment calculations? A) Equipment. B) Factory building rented to (and occupied by) another company. C) Cash. D) Accounts Receivable. 37) - 38) Which of the following would be considered an operating asset in returm on investment computations? A) Common stock. B) Land being held for plant expansion. C) Accounts receivable. D) Treasury stock. 38) 39) 39) Tennill Inc. has a $1,400,000 investment opportunity with the following characteristics: $ 4,480,000 40 % of sales $ 1,657,600 Sales Contribution margin ratio Fixed expenses The ROI for this year's investment opportunity considered alone is closest to: A) 8.1% D) 9.6% C) 128.0% B) 3.0% 40) 40) Wiswell Inc. reported the following results from last year's operations: 15,200,000 9,270,000 5,930,000 5,018,000 912.000 %24 Sales Variable expenses Contribution margin Fixed expenses Net operating income The average operating assets were $8,000,000. At the beginning of this year, the company has a $900,000 investment opportunity that would involve sales of $2,070,000, a contribution margin ratio of 30% of sales, and fixed expenses of $538,200. The company's minimum required rate of return is 10%. If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to: A) $994,800 C) ($19,800) D) $925,600 B) $104,800 13

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