Flamengo Co is a sporting goods manufacturing. Its basketball division had an ROI of 13% last year. The manager of the basketball division is considering additional investment in a new clothing line for the coming year. What step will the manager likely choose to take? Not invest in the clothing line if it gives less than 13% ROI. Not invest in the clothing line if it gives an ROI equal to 13%. Invest in the clothing line as long as its ROI is positive. Invest in the clothing line as long as it provides positive operating income. O Not invest in the clothing line if it gives more than 13% ROI.

Principles of Accounting Volume 2
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Chapter3: Cost-volume-profit Analysis
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Flamengo Co is a sporting goods manufacturing. Its basketball division had an ROI of 13% last year. The
manager of the basketball division is considering additional investment in a new clothing line for the
coming year. What step will the manager likely choose to take?
O Not invest in the clothing line if it gives less than 13% ROI.
O Not invest in the clothing line if it gives an ROI equal to 13%.
O Invest in the clothing line as long as its ROI is positive.
O Invest in the clothing line as long as it provides positive operating income.
O Not invest in the clothing line if it gives more than 13% ROI.
Transcribed Image Text:Flamengo Co is a sporting goods manufacturing. Its basketball division had an ROI of 13% last year. The manager of the basketball division is considering additional investment in a new clothing line for the coming year. What step will the manager likely choose to take? O Not invest in the clothing line if it gives less than 13% ROI. O Not invest in the clothing line if it gives an ROI equal to 13%. O Invest in the clothing line as long as its ROI is positive. O Invest in the clothing line as long as it provides positive operating income. O Not invest in the clothing line if it gives more than 13% ROI.
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