The Auto Division of Big Department Store Had a Net

question 57

Multiple Choice

The Auto Division of Big Department Store had a net operating income of $560,000,a net asset base of $4,000,000,and a required rate of return of 12 percent.Sales for the period totaled $3,000,000.The residual income for the period is

• A)$480,000.
• B)$360,000.
• C)$120,000.
• D)$80,000.

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