Question
The following data are available for the South Division of Redride Products, Inc. and the single product it makes: Unit selling price $28 Variable cost
The following data are available for the South Division of Redride Products, Inc. and the single product it makes:
Unit selling price | $28 |
Variable cost per unit | $14.00 |
Annual fixed costs | $291,200 |
Average operating assets | $1,900,000 |
If South wants a residual income of $52,000 and the minimum required rate of return is 11.00%, the annual turnover will have to be (Round your intermediate calculations and final answer to 2 decimal places):
0.58
0.29
0.29
1.72
Chace Products is a division of a major corporation. Last year the division had total sales of $22,800,000, net operating income of $582,600, and average operating assets of $5,750,000. The company's minimum required rate of return is 12.00%.
The division's residual income is closest to:
$582,600
$1,272,600
$(2,153,400)
$(107,400)
The West Division of Shekarchi Corporation had average operating assets of $657,000 and net operating income of $84,500 in March. The minimum required rate of return for performance evaluation purposes is 14%. What was the West Division's residual income in March?
-$7,480
$11,830
-$11,830
$7,480
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