The Following Information Pertains to the Three Divisions of Marlow

question 12

Multiple Choice

The following information pertains to the three divisions of Marlow Company: $\begin{array}{lrrr}& \underline{\text { Division} X} & \underline{\text { Division } Y} & \underline{ \text { Division Z }}\\\text { Sales } & ? & ? & 1,250,000 \\\text { Net operating income } & \$ 36,000 & \$ 25,000 & \$ 75,000 \\\text { Average operating assets } & 300,000 & ? & ? \\\text { Return on investment } & ? & 20 \% & 15 \% \\\text { Margin } & 0.10 & 0.05 & ? \\\text { Turnover } & 1.5 & ? & ? \\\text { Target ROI } & 15 \% & 12 \% & 10 \%\end{array}$ What is the residual income for Division X?

• A)$(36,000)
• B)$(9,000)
• C)$36,000
• D)$45,000

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Definitions:

Power Values

Quantitative measurements that represent the rate at which energy is used, produced, or transferred within a system.

Reactive Power

The portion of electricity that establishes and sustains the electric and magnetic fields in a circuit, measured in volt-amperes reactive (VAR).

Series RL Circuit

An electrical circuit consisting of resistors (R) and inductors (L) connected in series, affecting the circuit's overall impedance.

Inductive Reactance

The resistance to change in current flow offered by an inductor, measured in ohms.