Question
Shannon Pharmaceuticals has the following information available for one of its divisions in the current year: Salesrevenue$12 000 000 Average operatingassets4 000 000 Return on
Shannon Pharmaceuticals has the following information available for one of its divisions in the current year:
Salesrevenue$12 000 000
Average operatingassets4 000 000
Return on investment(ROI)45%
The company requires each of its divisions to generate a minimum return of 35 per cent. What is this division's residual income?
$700 000
$400 000
$450 000
$600 000
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College Accounting A Practical Approach
Authors: Jeffrey Slater
12th edition
978-0132772068, 133468100, 013277206X, 9780133468106, 978-0133133233
