Reference: 12-02
the Following Data Are Available for the South

question 60

Multiple Choice

Reference: 12-02
The following data are available for the South Division of Redride Products, Inc. and the single product it makes: $$\begin{array} { | l | l | } \hline \text { Unit selling price } & \$ 20 \\\hline \text { Variable cost per unit } & \$ 12 \\\hline \text { Annual fixed costs } & \$ 280,000 \\\hline \text { Average operating assets } & \$ 1,500,000 \\\hline\end{array}$$
-If the South Division wants a residual income of $50,000 and the minimum required rate of return is 10%, the annual turnover will have to be?

• A)0.80.
• B)0.32.
• C)1.25.
• D)1.50.

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Definitions:

Subclavian Artery

A major artery that supplies blood to the arms and, indirectly, to the chest wall and shoulders.

Vertebral Artery

A major artery that supplies blood to the posterior part of the brain, passing through the transverse foramina of the cervical vertebrae.

Great Saphenous Vein

The longest vein in the body, running along the length of the lower leg and thigh, and often used in coronary artery bypass surgery.

Hepatic Portal Vein

A large vein that carries nutrient-rich blood from the digestive organs to the liver for processing.