Guardian Corporation Has Two Major Divisions- Healthcare Products and Pharmaceutical

question 82

Multiple Choice

Guardian Corporation has two major divisions- Healthcare Products and Pharmaceutical Products.It provides the following information for the year. $$\begin{array} { | l | r | r | } \hline & \text { Healthcare Division } & \begin{array} { c } \text { Pharmaceutical } \\\text { Division }\end{array} \\\hline \text { Net sales } & \$ 150,000 & \$ 1,000,000 \\\hline \text { Operating income } & \$ 47,000 & \$ 218,400 \\\hline \text { Average assets } & \$ 310,000 & \$ 5,660,000 \\\hline \text { Target rate of return } & 13.0 \% & 13.0 \% \\\hline\end{array}$$ Calculate the residual income for the Healthcare Division.

• A)$27,500
• B)$6700
• C)$103,000
• D)$47,000

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Definitions:

Reciting

Reciting involves verbally repeating something from memory, often to practice or demonstrate knowledge.

Numbers List

refers to a sequential arrangement of numbers, typically used for organization, reference, or computational purposes.

Nonsense Syllables

A set of sounds with no assigned meaning, used in psychological experiments to study memory and learning.

Interference

A phenomenon where one memory competes with or replaces another memory, often observed in learning and recall processes.