The Following Information Has Been Gathered for the Brake Division

question 75

Multiple Choice

The following information has been gathered for the Brake Division:
$$\begin{array} { l r } \text { Sales } & \$ 420,000 \\\text { Operating income } & \$ 75,000 \\\text { Average eurrent assets } & \$ 260,000 \\\text { Cost of capital } &12\% \\\text { Return on investment } & 15 \%\end{array}$$
What is the Brake Division's residual income?

• A) $15,000.
• B) $22,500.
• C) $18,750.
• D) $48,000.

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Definitions:

Polygamy

The practice or condition of having more than one spouse at the same time.

Heterosexual Women

Women who are emotionally, romantically, or sexually attracted to individuals of the opposite sex.

Social Reforms

Actions and policies intended to rectify social issues and promote improvement in society.

Married Couple

Married Couple denotes two individuals legally united in marriage, forming a partnership typically recognized by law, religion, or social convention.