The Labrador Falls Company Has Three Divisions: a Division, B

question 42

Multiple Choice

The Labrador Falls Company has three divisions: A Division, B Division, and C Division.
$\begin{array}{lcc}&\text {A}&\text {B}&\text {C}\\\text { Sales } & \$ 320,000 & \$ 540,000&?\\\text { Net operating income } & 60,000 & ?&\$24,000 \\\text { Residual income } & ? & 36,000&14,400 \\\text { Average Division Assets } & ? & ?&80,000 \\\text { Cost of Capital } & 12 \% & 16 \%&? \\\text { Profit Margin } & 20 \% & 5 \%&? \\\text { Asset Turnover } & ? & 4.0 &?\\\text { Return investment } & 15 \% & ?&?\end{array}$

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What was A Division's residual income last year?

• A) $12,000.
• B) $22,500.
• C) $30,000.
• D) $48,000.

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Definitions:

Functional

Pertains to the practical or essential aspects of something, often referring to specific roles in a business or organization.

Organizational Structure

The system that outlines how certain activities are directed to achieve the goals of an organization, defining roles, responsibilities, and relationships.

Tasks They Perform

Relates to the specific duties and responsibilities assigned to an individual or team in a work environment.

Wide Span Of Control

A managerial approach where a single manager or leader oversees a large number of subordinates or units, leading to a less hierarchical organizational structure.