Question
ABC Inc. has the following information available for one of its divisions: Average operating assets $5 000 000 Return on investment (ROI) 70% Sales $8
ABC Inc. has the following information available for one of its divisions:
| Average operating assets | $5 000 000 |
| Return on investment (ROI) | 70% |
| Sales | $8 000 000 |
If ABC requires a minimum return on its investments of 30 per cent, what is their residual income?
Group of answer choices
$900 000
$3 000 000
$2 000 000
$1 500 000
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077400163
