Question
Kimbo PLC has three subsidiaries. Subsidiary Y has a controllable margin of Sh.150,000 on revenues of Sh.1,000,000. Average invested assets were Sh.600,000. Kimbo PLC requires
Kimbo PLC has three subsidiaries. Subsidiary Y has a controllable margin of Sh.150,000 on revenues of Sh.1,000,000. Average invested assets were Sh.600,000. Kimbo PLC requires a 15% minimum rate of return. What is the Residue Income (RI)?
Select one:
a. Sh.60,000
b. Sh.0
c. Sh.450,000
d. Sh.150,000
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Fundamental Managerial Accounting Concepts
Authors: Edmonds, Tsay, olds
6th Edition
71220720, 78110890, 9780071220729, 978-0078110894
