{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T20:01:55-04:00", "answer_date": "2024-05-26 20:01:55", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1756935", "url": "\/study-help\/questions\/allard-inc-presented-two-years-of-data-for-its-frozen-1756935", "question_creation_date_js": "2024-05-26T20:01:55-04:00", "question_creation_date": "May 26, 2024 08:01 PM", "meta_title": "[Solved] Allard, Inc., presented two years of data | SolutionInn", "meta_description": "Answer of - Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division. Frozen Foods Di | SolutionInn", "meta_keywords": "allard,inc.,presented,two,years,data,frozen,foods,division,canned,sales,year", "question_title_h1": " Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division. Frozen Foods Division: Sales Year 1 Year", "question_title": " Allard, Inc., presented two years of data for its Frozen Foods", "question_title_for_js_snippet": "Allard, Inc , presented two years of data for its Frozen Foods Division and its Canned Foods Division Frozen Foods Division Sales Year 1 Year 2 $35,700,000 $37,800,000 Operating income 1,350,000 1,510,000 Average operating assets 2,850,000 2,850,000 Canned Division Sales Operating income Average operating assets Year 1 Year 2 $11,700,000 $12,600,000 610,000 5,650,000 530,000 5,650,000 At the end of Year 2, the manager of the Canned Division is concerned about the division's performance As a result, he is considering the opportunity to invest in two independent projects The first is juice boxes for elementary school children The second is fruit and veggie pouches for kids on the go Without the investments, the division expects that Year 2 data will remain unchanged The expected operating incomes and the outlay required for each investment are as follows Operating income Outlay Juice Box Fruit Pouch $28,000 160,000 $15,200 110,000 Allard's corporate headquarters has made available up to $580,000 of capital for this division Any funds not invested by the division will be retained by headquarters and invested to earn the company's minimum required rate of return, 7 percent Required 1 Compute the residual income for each of the opportunities (Round to the nearest dollar ) Juice Box residual income", "question_description": "\"image\"image", "transcribed_text": "Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division. Frozen Foods Division: Sales Year 1 Year 2 $35,700,000 $37,800,000 Operating income 1,350,000 1,510,000 Average operating assets 2,850,000 2,850,000 Canned Division: Sales Operating income Average operating assets Year 1 Year 2 $11,700,000 $12,600,000 610,000 5,650,000 530,000 5,650,000 At the end of Year 2, the manager of the Canned Division is concerned about the division's performance. As a result, he is considering the opportunity to invest in two independent projects. The first is juice boxes for elementary school children. The second is fruit and veggie pouches for kids on the go. Without the investments, the division expects that Year 2 data will remain unchanged. The expected operating incomes and the outlay required for each investment are as follows: Operating income Outlay Juice Box Fruit Pouch $28,000 160,000 $15,200 110,000 Allard's corporate headquarters has made available up to $580,000 of capital for this division. Any funds not invested by the division will be retained by headquarters and invested to earn the company's minimum required rate of return, 7 percent. Required: 1. Compute the residual income for each of the opportunities. (Round to the nearest dollar.) Juice Box residual income", "related_book": { "title": "Financial accounting", "isbn": "9781119153726, 978-1118285909", "edition": "IFRS Edition", "authors": "Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/245.jpg", "uri": "\/textbooks\/financial-accounting-ifrs-edition-245", "see_more_uri": "" }, "free_related_book": { "isbn": "B0853DX16Z", "uri": "\/textbooks\/-mustad-jig-head-purple-1-8oz-b0853dx16z-128967", "name": "\u200eMustad Jig Head Purple 1\/8oz", "edition": "" }, "question_posted": "2024-05-26 20:01:55", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/statistics-alive\/for-the-following-28-scores-on-a-40point-test-a", "description": "For the following 28 scores on a 40-point test, a. Construct a bar graph using 4-point score intervals and b. 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