Question
Q31 Selected data from Division A of Green Company are as follows: Sales $ 450,000 Average investment $ 54,000 Operating income $ 45,000 Minimum rate
Q31
Selected data from Division A of Green Company are as follows:
| Sales | $ 450,000 |
|---|---|
| Average investment | $ 54,000 |
| Operating income | $ 45,000 |
| Minimum rate of return | 18% |
If the minimum rate of return was 14% (instead of the percentage shown above), Division A's residual income (RI) would be:
Multiple Choice
-
$35,280.
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$1,620.
-
$37,440.
-
$9,720.
-
$44,100.
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Fundamental Accounting Principles
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
20th Edition
1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870
