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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Definitions:

Kelly's Conception

A psychological theory proposed by George Kelly, focusing on personal constructs as fundamental elements in understanding and predicting human behavior.

Personal Construct Theory

A psychological theory that suggests individuals develop personal constructs about how the world works, which they then use to interpret events.

Human Personality

A complex set of characteristics, behaviors, and emotional patterns derived from both genetic and environmental influences.

Cognitive Representations

Mental models or mental images of the world that individuals use to interpret and interact with their surroundings.