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8. James Webb is the general manager of the Industrial Product Division, and his performance is measured using the residual income method. Webb is reviewing
8. James Webb is the general manager of the Industrial Product Division, and his performance is measured using the residual income method. Webb is reviewing the following forecasted information for his division for next year. Category Working capital Revenue Plant and equipment Amount (thousands) $1,800 30,000 17,200 If the imputed interest charge is 15 percent and Webb wants to achieve a residual income ta of $2 million, what will costs have to be in order to achieve the target? A. $10,800,000 B. $23,620,000 C. $25,150,000 D. $25,690,000
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