Division a Has Generated Sales Revenue of $22,700,000 and Achieved

question 51

Multiple Choice

Division A has generated sales revenue of $22,700,000 and achieved operating income of $265,000 using $1,500,000 of invested assets.If the management desires a minimum rate of return of 12% on the invested assets, Division A's residual income would be:

• A) $85,000.
• B) $52,500.
• C) $81,500.
• D) $38,000.

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Definitions:

Skeletal Muscle

A type of striated muscle tissue attached to bones, responsible for initiating and controlling voluntary movements.

Electrical Stimulation

A therapeutic treatment that uses electric current for pain relief, muscle stimulation, and healing enhancement.

Malignant Tumor

A cancerous growth that can invade and destroy nearby tissue and has the potential to spread to other parts of the body.

Neuroblasts

Immature nerve cells that have the potential to develop into fully functioning neurons, essential for the growth and development of the nervous system.