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Alder Cough Drops operates two divisions. The following information pertains to each division for 2013. Division A Division B Sales $ 209,000 $ 85,000 Operating
| Alder Cough Drops operates two divisions. The following information pertains to each division for 2013. |
| Division A | Division B | |||||
| Sales | $ | 209,000 | $ | 85,000 | ||
| Operating income | $ | 15,100 | $ | 9,500 | ||
| Average operating assets | $ | 58,000 | $ | 43,000 | ||
| Companys desired rate of return | 14 | % | 14 | % | ||
| Required | |
| a. | Compute each divisions residual income. |
| b. | Which division increased the companys profitability more? | ||||
|
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Word Search For Auditors And Accounting Professionals Puzzle Book Audit And Accounting Vocabulary For Adults And Teens
Authors: Drew Drew
1st Edition
B0B5KVJHVL, 979-8839390089
