The Following Information Is Available for Kiss Company What Is Kiss Company's Residual Income?
A) $2,000

question 147

Multiple Choice

The following information is available for Kiss Company:
$$\begin{array} { l c } \text { Sales } & \$ 100,000 \\\text { Operating expenses } & \$ 94,000 \\\text { Operating assets } & \$ 40,000 \\\text { Stockholder's equity } & \$ 25,000 \\\text { Cost of capital } &10\%\end{array}$$
What is Kiss Company's residual income?

• A) $2,000.
• B) $2,500.
• C) $3,500.
• D) $4,000.

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Definitions:

Need

A basic requirement or necessity for survival or achieving a particular outcome.

Want

An expressed desire or wish for something that is not necessary for survival but may enhance the quality of life or provide satisfaction in some way.

Place

In marketing, refers to the distribution aspect and making the product available to the customer at the right location.

Inventory

The total amount of goods and materials held in stock by a business, warehouse, or store.