For 2014, the New Products Division, of Testar Company, had operating income of $8,100,000 and operating assets of $44,900,000 The New Products Division has developed a potential new product that would require $8,600,000 in operating assets and would be expected to provide $1,500,000 in operating income each year Testar has set a target return on investment (ROI) of 17 for each of its divisions Assuming that the new product is put into production, calculate the residual income for the division Multiple Choice $505,000 $465,000 $305,000 $995,000 For 2014, the New Products Division, of Testar Company, had operating income of $8,100,000 and operating assets of $44,900,000 The New Products Division has developed a potential new product that would require $8,600,000 in operating assets and would be expected to provide $1,500,000 in operating income each year Testar has set a target return on investment (ROI) of 17 for each of its divisions Assuming that the new product is put into production, calculate the residual income for the division Multiple Choice $505,000 $465,000 O $305,000 O O $995,000

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For 2014, the New Products Division, of Testar Company, had operating income of $8,100,000 and operating assets of $44,900,000. The New Products Division has developed

For 2014, the New Products Division, of Testar Company, had operating income of $8,100,000 and operating assets of $44,900,000. The New Products Division has developed a potential new product that would require $8,600,000 in operating assets and would be expected to provide $1,500,000 in operating income each year. Testar has set a target return on investment (ROI) of 17% for each of its divisions. Assuming that the new product is put into production, calculate the residual income for the division. Multiple Choice $505,000 $465,000 $305,000 $995,000

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