Question
Shannon Pharmaceuticals has the following information available for one of its divisions in the current year: Sales revenue $12 000 000 Average operating assets 4
Shannon Pharmaceuticals has the following information available for one of its divisions in the current year:
Sales revenue $12 000 000
Average operating assets 4 000 000
Return on investment (ROI) 45%
The company requires each of its divisions to generate a minimum return of 35 per cent. What is this divisions residual income?
-$600 000
-$450 000
-$700 000
-$400 000
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Management Accounting For Business Decisions
Authors: Colin Drury
2nd Edition
1861527705, 978-1861527707
