Question
Shannon Pharmaceuticals has the following information available for one of its divisions in the current year: Salesrevenue$10 000 000 Average operatingassets4 000 000 Return on
Shannon Pharmaceuticals has the following information available for one of its divisions in the current year:
Salesrevenue$10 000 000 Average operatingassets4 000 000 Return on investment(ROI)40%
The company requires each of its divisions to generate a minimum return of 30 per cent. What is this divisions residual income?
| $450 000 |
| $700 000 |
| $400 000 |
| $600 000 |
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Core Concepts Of Accounting Information Systems
Authors: Mark G. Simkin, Carolyn A. Strand Norman, Scott Paquette
1st Canadian Edition
