$\text { Estes Company has assembled the following data for its divisions for the past year: }$

question 63

Multiple Choice

$\text { Estes Company has assembled the following data for its divisions for the past year: }$
$\begin{array}{l|r|r|}\hline & \text { Division A } & \text { Division B } \\\hline \text { Average Operating Assets } & \$ 500,000 & ? \\\hline \text { Sales } & ? & \$ 520,000 \\\hline \text { Operating Income } & \$ 100,000 & \$ 20,300 \\\hline \text { Turnover } & 1.25 & 4 \\\hline \text { Margin } & ? & 3.9 \% \\\hline \text { Minimum Required Rate of Return } & 14 \% & ? \\\hline \text { Residual Income } & ? & \$ 6,000 \\\hline\end{array}$
-What were Division A's sales?

• A) $125,000.
• B) $200,000.
• C) $400,000.
• D) $625,000.

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Definitions:

Hybrid Contract

An agreement that encompasses elements of both goods and services within the same transaction.

UCC Article 2

Part of the Uniform Commercial Code that governs the sale of goods in the United States, providing a framework for transactions and contracts.

CISG

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is an international treaty that establishes a uniform framework for the international sale of goods, providing a set of rules governing the formation of contracts for the sale of goods between parties based in different countries.

Requirements Contract

An agreement in which one party agrees to purchase all of its needs for a specific product or service from the other party.