The Consumer Products Division of Goich Corporation Had Average Operating

question 223

Multiple Choice

The Consumer Products Division of Goich Corporation had average operating assets of $1,000,000 and net operating income of $91,700 in May. The minimum required rate of return for performance evaluation purposes is 9%.What was the Consumer Products Division's residual income in May?

• A) $(1,700)
• B) $8,253
• C) $1,700
• D) $(8,253)

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Definitions:

Annual Contract

A legally binding agreement between parties that lasts for one year, often used for services or rental agreements.

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Mobile Device

A portable computing device such as a smartphone or tablet, which has wireless internet connectivity.