Assume That Division a Has Generated Sales Revenue of $4,550,000

question 106

Multiple Choice

Assume that Division A has generated sales revenue of $4,550,000 and achieved income from operations of $530,000 using $2,800,000 of invested assets.If management desires a minimum rate of return of 15%,the residual income would be:

• A)$110,000.
• B)$152,500.
• C)$79,500.
• D)$530,000.

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