Pine Corphas Revenues of $500,000 Resulting in an Operating Income of of $54,000.Invested

question 122

Multiple Choice

Pine Corp.has revenues of $500,000 resulting in an operating income of $54,000.Invested assets total $600,000.Residual income is $18,000.Calculate the new residual income if sales increase by 10% and the profit margin and invested assets remain the same.

• A)$23,400
• B)$0
• C)$3,240
• D)$36,000

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