Question
Paprus Inc. provided the following information for its manufacturing division: Revenues $650,000 Operating expenses $400,000 Service department charges $ 95,000 Invested assets $600,000 Assume that
Paprus Inc. provided the following information for its manufacturing division:
| Revenues | $650,000 |
| Operating expenses | $400,000 |
| Service department charges | $ 95,000 |
| Invested assets | $600,000 |
Assume that Paprus Inc. has established 20% as the minimum acceptable return on divisional assets. Determine the residual income for the manufacturing division.
a.$43,500
b.$155,000
c.$35,000
d.$130,000
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SAP S/4HANA Financial Accounting Certification Guide
Authors: Stefanos Pougkas
1st Edition
1493215507, 978-1493215508
