Terra Company Has Two Divisions, the Retail Division and the Wholesale

question 47

Multiple Choice

Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year: $\begin{array}{cc} & \text { Retall D1vislon }&\text { Wholesale} \\&&\text { Division}\\\text { Operating income } & \$ 2,500,000 &\$6,000,000\\\text { Operating assets } & \$ 16,000,000&\$36,000,000\end{array}$ Terra Company has set a target return on investment (ROI) of 15% for both divisions Which of the following statements is accurate?

• A) Residual income for the wholesale sales division was $100,000
• B) Residual income for the wholesale sales division was $600,000
• C) Residual income for the retail sales division was $600,000
• D) None of these.

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Definitions:

Vascular Plants

Plants that have specialized tissues for conducting water and nutrients, including ferns, gymnosperms, and angiosperms.

Scientific Names

Formal, standardized naming system for organisms, based on Latin and Greek words, that consists of a genus and species designation.

Latin

An ancient Indo-European language of the Italic branch, historical language of the Roman Empire, and a foundation for many modern languages' vocabulary and grammar.

Woese

Woese refers to Carl Woese, a microbiologist known for defining the Archaea (a new domain of life) through phylogenetic taxonomy of 16S ribosomal RNA, a technique that revolutionized the classification of microorganisms.