The New Products Division of Testar Company, Had Operating Income

question 1

Multiple Choice

The New Products Division of Testar Company, had operating income of $9,800,000 and operating assets of $46,600,000 during the current year. The New Products Division has developed a potential new product that would require $10,300,000 in operating assets and would be expected to provide $3,200,000 in operating income each year. Testar has set a target return on investment (ROI) of 22% for each of its divisions. Assuming that the new product is put into production, calculate the residual income for the division.

• A) $442,000
• B) $482,000
• C) $2,718,000
• D) $282,000

Understand the concept of shared and empowering leadership.

Grasp the fundamentals of self-leadership practices.

Identify values-based leadership styles and their impact.

Differentiate between contemporary leadership perspectives and their implications.

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