1.

The manager of Synergy Company's Stock Division projects the following for next year:

Sales	$195,000
Operating income	70,000
Operating assets	385,000

The manager can invest in an additional project that would require $50,000 investment in additional assets and would generate $9,000 of additional income. The company's minimum rate of return is 15%. What is the residual income for the Stock Division with the additional project?

Group of answer choices

$40,000

$6,000

$25,600

$4,200

$13,750

.

2.

Planet Company had operating income of $12,000, average operating assets of $125,000, and sales of $45,000. What is Planet's return on investment (ROI)? (Note: Round answer to two decimal places.)

Group of answer choices

4.50%

5.80%

9.60%

25.50%

20.60%

.

3.

Assume that divisional income from operations amounts to $215,000 and top management has established 15% as the minimum rate of return on divisional assets totaling $1,000,000. The residual income for the division is

Group of answer choices

$635,000

$150,000

$65,000

$215,000