Question
Dillon Company has the following information available for one of its divisions: Average operating assets $4,000,000 Sales $4,800,000 Return on investment (ROI) 30% Refer to
Dillon Company has the following information available for one of its divisions:
| Average operating assets | $4,000,000 |
| Sales | $4,800,000 |
| Return on investment (ROI) | 30% |
Refer to Exhibit 11-3. If Dillon's cost of capital is 25%, what is the division's residual income?
Group of answer choices
$ 200,000
$800,000
$440,000
$1,200,000
None of the answer choices is correct.
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Intermediate Accounting Volume 1
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick
7th Edition
1260306747, 978-1260306743
