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ABC Inc. has the following information available for one of its divisions: Average operating assets $5 000 000 Return on investment (ROI) 55% Sales $8
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ABC Inc. has the following information available for one of its divisions:
Average operating assets $5 000 000 Return on investment (ROI) 55% Sales $8 000 000
If ABC requires a minimum return on its investments of 30 per cent, what is their residual income?
$900 000
$3 000 000
$1 500 000
$1 250 000
ABC Inc. has the following information available for one of its divisions:
Average operating assets $5 000 000 Return on investment (ROI) 55% Sales $8 000 000
If ABC requires a minimum return on its investments of 30 per cent, what is their residual income?
| $900 000 | ||
| $3 000 000 | ||
| $1 500 000 | ||
| $1 250 000 |
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