Question
Presented below is selected information for three regional divisions of Medina Company. Divisions North West South Contribution margin $ 300,000 $ 500,000 $ 399,300 Controllable
Presented below is selected information for three regional divisions of Medina Company.
| Divisions | |||||||||
| North | West | South | |||||||
| Contribution margin | $ 300,000 | $ 500,000 | $ 399,300 | ||||||
| Controllable margin | $ 139,500 | $ 360,800 | $ 210,000 | ||||||
| Average operating assets | $ 930,000 | $ 1,640,000 | $ 1,400,000 | ||||||
| Minimum rate of return | 11 | % | 15 | % | 9 | % | |||
(b)
Compute the residual income for each division.
| North Division | $ | |
| West Division | $ | |
| South Division |
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Accounting Concepts And Applications
Authors: K. Fred Skousen, W. Steve Albrecht, James D. Stice, Earl K. Stice
7th Edition
0538876247, 978-0538876247
