Question
Bumble Company has two divisions, Grumble and Humble. Bumbles required rate of return on capital is 11 percent. Grumble has a 25% sales margin, 20%
Bumble Company has two divisions, Grumble and Humble. Bumbles required rate of return on capital is 11 percent. Grumble has a 25% sales margin, 20% ROI, and income of $200,000. What is Grumbles residual income?
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$88,000.
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$112,000.
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$156,000.
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$90,000.
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Cannot be determined based on the data presented.
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Survey Of Accounting
Authors: Carl S. Warren
4th Edition
0538478144, 9780538478144
