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The following data pertains to AAA division of JJJ Company. Selling price per unit $15 Variable cost per unit $5 Total fixed costs $100,000 Total
| The following data pertains to AAA division of JJJ Company. | |
| Selling price per unit | $15 |
| Variable cost per unit | $5 |
| Total fixed costs | $100,000 |
| Total investment of AAA division | $200,000 |
| a) the minimum desired | |
| return on investment | 10% |
| b) the estimated sales in unit is | 12,500 |
| What is the residual income (RI)? |
| 1. | $10,000 |
| 2. | $5,000 |
| 3. | There is no RI |
| 4. | We need more information to calculate RI |
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Auditing and Assurance services an integrated approach
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
14th Edition
133081605, 132575957, 9780133081602, 978-0132575959
