Joseph Company Reported the Following Information for the Current Year

question 59

Multiple Choice

Joseph Company reported the following information for the current year: $\begin{array}{llr} \text {Sales } &\$787,000\\ \text { Average operating assets} &\$375,000\\ \text { Desired ROI } &12\%\\ \text { Residual income } &\$11,250\end{array}$
The company's operating income was:

• A) $94,440.
• B) $56,250.
• C) $45,000.
• D) $33,750.

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Definitions:

International Nickel Company

A multinational corporation that was historically involved in nickel mining and smelting; now part of Vale S.A.

DeBeers Diamond Company

A large multinational corporation that specializes in diamond exploration, diamond mining, diamond retail, diamond trading and industrial diamond manufacturing sectors.

National Football League

A professional American football league consisting of 32 teams, divided equally between the National Football Conference (NFC) and the American Football Conference (AFC).

American Football League

A professional American football league that merged with the National Football League (NFL) in 1970, now known as the AFC within the NFL.