Final answer:
The statement is false. The Boat Division may have the highest operating income, but it doesn't necessarily mean it has the highest ROI. ROI is calculated based on operating income and average total assets.
Step-by-step explanation:
The statement is false. The return on investment (ROI) is a measure of how efficiently a company is using its assets to generate profits. While the Boat Division may have the highest operating income, it doesn't necessarily mean that it has the highest ROI.
ROI is calculated by dividing the operating income by the average total assets. Therefore, the division with the highest ROI would be the one that generates the most income relative to the assets used. It is possible that another division of Sea Cruise Equipment Company has a higher ROI, even if it has a lower operating income.
For example, if the Boat Division has higher operating expenses or a larger asset base, it could result in a lower ROI compared to another division with lower expenses and a smaller asset base.