Howard Company Provided the Following Selected Information About Its Consumer $\begin{array}{lr}\text { Desired ROI } & 12\% \\\text { Operating income } & \$ 150,000 \\\text { Residual income } & \$ 30,000\end{array}$

question 158

Multiple Choice

Howard Company provided the following selected information about its consumer products division for the current year: $\begin{array}{lr}\text { Desired ROI } & 12\% \\\text { Operating income } & \$ 150,000 \\\text { Residual income } & \$ 30,000\end{array}$ Based on this information, the division's investment amount was:

• A) $250,000.
• B) $1,000,000.
• C) $1,500,000.
• D) $1,250,000.

---

Definitions:

Defensive Driving

Practice of using driving strategies that minimize risks and potential for accidents by anticipating dangerous situations.

Interest Rate

is the cost of borrowing money, expressed as a percentage of the principal, that lenders charge borrowers or the rate earned on deposits.

Expected Returns

Expected returns are the anticipated profit or loss from an investment, reflecting the potential financial gains or risks based on historical data and market trends.

Investment Demanded

Investment demanded refers to the total amount of spending by businesses and individuals on capital goods like machinery, buildings, and technology, to increase future productivity.