Question
The Assembly division of Joseph Ltd has a net profit of $675,000 and a residual income of $290,000. If a rate of 12.5 per cent
The Assembly division of Joseph Ltd has a net profit of $675,000 and a residual income of $290,000. If a rate of 12.5 per cent is used as the imputed interest, calculate the division's return on investment. (Round the final answer to a whole number.)
| a. | 7% | |
| b. | 15% | |
| c. | 22% | |
| d. | 23% | |
| e. | None of the answers. |
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Information For Decision Making Readings In Cost And Managerial Accounting
Authors: Alfred Rappaport
2nd Edition
0134643887, 978-0134643885
