Determine the April 20xx Residual Income for an Investment Center

question 95

Multiple Choice

Determine the April 20xx residual income for an investment center with the following information: $\begin{array}{lr}\text { Operating income for the month ended April 30, 20xx } & \$ 14,900,000 \\\text { Assets at March 31, 20xx } & 10,200,000 \\\text { Assets at April 30, 20xx } & 13,150,000 \\\text { Desired ROI } & 49 \% \\\text { Actual ROI } & 60 \%\end{array}$

• A) $8,456,500
• B) $8,780,000
• C) $9,179,250
• D) $8,945,750

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Definitions:

Profits Negative

A financial state where a business experiences a deficit, spending more money than it is earning from its operations.

Stagnation

A period of slow or no growth in an economy, market, or industry, often marked by a decline in productivity and innovation.

Product Life Cycle

A concept that describes the stages a product goes through from its introduction to the market until its decline and eventual withdrawal.

Maturity

The state of being fully grown or developed, often referring to the final stage in the life cycle of a product or market.