Consider the Following Data from Two Divisions of a Company

question 72

Multiple Choice

Consider the following data from two divisions of a company, P and Q:
$\begin{array}{lrrrr}\text { Divisional } &{\mathrm{P}} & \mathrm{Q} \\\text { Sales } & \$ 1,500,000 & \$ 1,000,000 \\\text { Operating Income } & \$ 600,000 & \$ 450,000 \\\text { Investment } & \$ 4,000,000 & \$ 2,750,000\end{array}$
If the minimum rate of return is 11%, what is Division Q's residual income (RI) ?

• A)$147,500.
• B)$490,000.
• C)$752,000.
• D)$950,000.
• E)$1,049,500.

Realize the significance of effective research methods in report writing, including primary and secondary research.

Appreciate the ethical responsibilities involved in conducting and presenting research.

Understand the use of different internet research tools and their categorization.

Develop insights on how to evaluate information sources for credibility and relevance.

---

Definitions:

Beyond Work

Activities, interests, or responsibilities that individuals engage in outside of their professional duties or employment.

Sustainable Competitive Advantage

A unique attribute or position a company sustains over time, which allows it to outperform competitors.

Competitive Advantage

A condition that allows a company or country to produce goods or services at a lower price or in a more desirable fashion for customers.

Consulting Company

A business that provides expert advice to other organizations or individuals in a professional field.