The Following Information Pertains to the Three Divisions of Merrymount

question 49

Multiple Choice

The following information pertains to the three divisions of Merrymount Company: $\begin{array}{lrrr}&\text { Division } X& \text { Division } Y& \text { Division } Z\\\text { Sales } & ? & ? & 1,250,000 \\\text { Net operating income } & \$ 36,000 & \$ 25,000 & \$ 7,000 \\\text { Average operating assets } & 300,000 & ? & ? \\\text { Retum on investment } & ? & 20 \% & 15 \% \\\text { Margin } & 0.10 & 0.05 & ? \\\text { Turnover } & 1.5 & ? & ? \\\text { Target ROI } & 15 \% & 12 \% & 10 \%\end{array}$ What is the residual income for Division X?

• A)$36,000
• B)$45,000
• C)$(9,000)
• D)$(36,000)

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Definitions:

Memory and Reasoning

Cognitive processes involving the storage, retrieval, and use of information to make decisions and solve problems.

Older Adults

Individuals typically aged 65 years and older, often considered the senior citizen or elderly population segment.

Capacities Underestimated

The phenomenon where an individual's or group's abilities or potential are judged or valued lower than their actual capabilities.

Time of Research

Refers to the specific period during which scientific research is conducted.