Sousa Corporation Provides the Following Financial Information Calculate the Residual Income of Sousa Corporation

question 78

Multiple Choice

Sousa Corporation provides the following financial information: $$\begin{array} { | l | r | } \hline \text { Minimum acceptable operating income } & \$ 556,600 \\\hline \text { Average total assets } & \$ 2,600,000 \\\hline \text { Operating income } & \$ 708,000 \\\hline \text { Return on investment } & 27 \% \\\hline \text { Net sales } & \$ 900,000 \\\hline\end{array}$$ Calculate the residual income of Sousa Corporation.

• A)$2,043,400
• B)$343,400
• C)$151,400
• D)$412,274

---

Definitions:

Actual Price

The price at which a good or service is sold in the market, as opposed to its listed or theoretical price.

Producer Surplus

The difference in the expected remuneration by producers for offering a good or service and the actual revenue they secure.

Purely Competitive

A market structure characterized by many buyers and sellers, where each seller is a price taker and homogeneous products are offered.

Market

An economic system that allows buyers and sellers to exchange goods and services, determining prices through the laws of supply and demand.