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ABC Inc. has the following information available for one of its divisions: Average operating assets $6 000 000 Return on investment (ROI) 30% Sales $10
ABC Inc. has the following information available for one of its divisions:
Average operating assets | $6 000 000 |
Return on investment (ROI) | 30% |
Sales | $10 000 000 |
If ABC requires a minimum return on its investments of 25 per cent, what is their residual income?
Group of answer choices
$4 500 000
$300 000
$250 000
$1 700 000
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