USProducts Operates Two Divisions with the Following Sales and Expense

question 27

Multiple Choice

U.S.Products operates two divisions with the following sales and expense information for the month of May: North Division: Sales $240,000; Operating income $72,000, Operating assets $600,000.
South Division: Sales $160,000; Operating income $80,000, Operating assets $800,000.
U.S.Products expects a minimum return of 10% should be earned from all investments.
South Division's residual income for May is:

• A)$(8,000).
• B)$0.
• C)$8,000.
• D)$12,000.

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Definitions:

Antagonist

A drug that blocks the actions of a receptor or its intended ligand.

Receptor Site

Specific regions on a cell surface or within a cell where chemicals, such as hormones or neurotransmitters, can bind to elicit a physiological response.

Pharmacodynamic

pertains to the study of the biochemical and physiological effects of drugs and their mechanisms of action.

Analgesic

A class of drugs designed to relieve pain without causing loss of consciousness.