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1) If income from operations for a division is $12,000, invested assets are $50,000, and sales are $60,000, the profit margin is 24% a. true b. false 2) If income from operations for a division is $12,000, invested assets are $50,000, and sales are $60,000, the investment turnover is 5. a. true b. false 3) The manager of the furniture department of a leading retailer does not control the salaries of departmental personnel. a. true b. false 4) Stevensen Corportaion had $550,000 in invested assets, sales of $660,000, income from operations amounting to $99,000, and a desired minimum rate of return 15%. The rate of return on investment for Stevensen is: a. 16% b. 20% c. 18% d. 15%
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Ddescribe the possible "errors" or "frauds" that could occur because of the control weakness. You are to do this using the information provided in the case.
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