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:

Psychological Problems

Mental health conditions that affect a person's thinking, feeling, behavior, and ability to relate to others.

Urge to Be Thin

A strong desire or compulsion toward achieving a lower body weight or slim physique, often found in eating disorders.

Anorexics

Individuals suffering from anorexia nervosa, an eating disorder characterized by an obsessive fear of gaining weight and severely restricting food intake.

Severe Obesity

A condition characterized by an excessively high body mass index (BMI), often exceeding 40, which poses significant health risks.