Avocado Company Has an Operating Income of $80,000 on Revenues

question 58

Multiple Choice

Avocado Company has an operating income of $80,000 on revenues of $1,000,000.Average invested assets are $500,000 and Avocado Company has an 8% cost of capital.What is the residual income?

• A)$100,000
• B)$20,000
• C)$120,000
• D)$40,000

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Definitions:

Diabetes

A chronic medical condition where the body is unable to properly process glucose, leading to high blood sugar levels.

Alcoholism

A severe form of alcohol abuse characterized by an inability to manage drinking habits and a high or compulsive dependence on alcohol.

Erectile Disorder

A sexual dysfunction characterized by the consistent inability to maintain an erection sufficient for satisfactory sexual activity.

Physiological Origin

Refers to the biological basis or causes of a bodily function or characteristic.