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The Labrador Falls Company has three divisions: A Division, B Division, and C Division. A B C Sales $ 326,000 $ 546,000 ? Net operating
The Labrador Falls Company has three divisions: A Division, B Division, and C Division.
| A | B | C | |||||||||
| Sales | $ | 326,000 | $ | 546,000 | ? | ||||||
| Net operating income | 63,000 | ? | $ | 24,600 | |||||||
| Residual income | ? | 39,000 | 15,000 | ||||||||
| Average Division Assets | 253,000 | 323,000 | 83,000 | ||||||||
| Cost of Capital | 12 | % | 12 | % | |||||||
| Profit Margin | 20 | % | 3 | % | |||||||
| Asset Turnover | ? | 2 | |||||||||
| Return on investment | 15 | % | |||||||||
What was A Division's residual income last year?
$12,600.
$25,050.
$30,360.
$50,400.
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