38. This item presents one of several interrelated items of a multi-part segment evaluation problem. One segment of the Hishim Candy Company has provided you with some information about the segment's operation for the past fiscal year. The segment investment (average assets) was $4,000,000. The sales were $4,800,000. The income of the segment was $540,000. The firm's cost of capital (and minimum desired rate of return) is 12%. What is the residual income for the segment for the period?

Group of answer choices

1.4 times

13%

$800,000

$540,000

$60,000

39. This item presents one of several interrelated items of a multi-part segment evaluation problem. One segment of the Hishim Candy Company has provided you with some information about the segment's operation for the past fiscal year. The segment investment (average assets) was $4,000,000. The sales were $4,800,000. The income of the segment was $540,000. The firm's cost of capital (and minimum desired rate of return) is 12%. What is the return on investment for the segment for the period?

Group of answer choices

11.25%

13%

12 %

13.5%

some other percentage

40. This item presents one of several interrelated items of a multi-part segment evaluation problem. One segment of the Hishim Candy Company has provided you with some information about the segment's operation for the past fiscal year. The segment investment (average assets) was $4,000,000. The sales were $4,800,000. The income of the segment was $540,000. The firm's cost of capital (and minimum desired rate of return) is 12%. What is the net profit margin ratio for the segment for the period?

Group of answer choices

13%

12 %

some other percentage

11.25%

13.5%

41. This item presents one of several interrelated items of a multi-part segment evaluation problem. One segment of the Hishim Candy Company has provided you with some information about the segment's operation for the past fiscal year. The segment investment (average assets) was $4,000,000. The sales were $4,800,000. The income of the segment was $540,000. The firm's cost of capital (and minimum desired rate of return) is 12%. What is asset turnover for the segment for the period?

Group of answer choices

2.4 times

11.25 times

1.33 times

none of the above

1.2 times

42. This item presents one of several interrelated items of a multi-part segment evaluation problem. One segment of the Hishim Candy Company has provided you with some information about the segment's operation for the past fiscal year. The segment investment (average assets) was $4,000,000. The sales were $4,800,000. The income of the segment was $540,000. The firm's cost of capital (and minimum desired rate of return) is 12%. If an increase of $1,000,000 in the firm's investment in the segment resulted in an increase of $48,000 in income, by how much would residual income change and in which direction?

Group of answer choices

$48,000 increase

$12,000 decrease

$72,000 decrease

$60,000 increase

$12,000 increase