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The following information pertains to the three divisions of Merrymount Company: Division X Division Y Division Z Sales ? ? 1,250,000 Net operating income $
The following information pertains to the three divisions of Merrymount Company:
Division X | Division Y | Division Z | |
Sales | ? | ? | 1,250,000 |
Net operating income | $ 36,000 | $25,000 | $ 75,000 |
Average operating assets | 300,000 | ? | ? |
Return on investment | ? | 20% | 15% |
Margin | 0.10 | 0.05 | ? |
Turnover | 1.5 | ? | ? |
Target ROI | 15% | 12% | 10% |
What is the residual income for Division X?
a.$(36,000)
b.$45,000
c.$(9,000)
d.$36,000
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