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.

---

Definitions:

Confederate Leadership

Individuals who led the Confederate States of America during the American Civil War, fighting for the preservation of slavery and secession from the United States.

Military Commander

A high-ranking officer in the armed forces with authority and responsibility over military operations and personnel, often making strategic and tactical decisions.

Transcontinental Railroad

A network of railroad trackage that crosses a continental land mass, connecting the Pacific and Atlantic coasts of the United States, completed in 1869.

Union Pacific

A major railroad company in the United States, primarily operating in the western two-thirds of the country.