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Use the following information to answer Questions 16 through 18. The manager of Rushville Division estimates the following for next year. RUSHVILLE DIVISION ESTIMATES FOR

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Use the following information to answer Questions 16 through 18. The manager of Rushville Division estimates the following for next year. RUSHVILLE DIVISION ESTIMATES FOR VARIOUS AMOUNTS USED IN PERFORMANCE EVALUATION FOR NEXT YEAR Sales Revenue Operating Income Investment in Operating Assets 100,000 30,000 200,000 the manager cun invest in an additional project that would require additional $30,000 investment in operating assets but narating assets but would provide an fitional operating income of $4,200. Management requires a minimum 16. rate of refum is 1296 ar is the residual income for Rushville Division without the additional project investment? $30,000. (b) S 0. (c) $ 4.200. (d) $6,000. 17. What is the residual income for Rushville Division with the additional proje investment? (a) $34,200. (b) $6,000. (c) $10.200. (d) $ 6,600. 18. What is the return on investment for Rushville Division with the additional project investment? (a) 34.20%. (b) 12.00% 14.87% (d) 15.00%

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