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The Following Information Pertains to the Three Divisions of Zorro

question 122

Multiple Choice

The following information pertains to the three divisions of Zorro Company:  Division A  Division B  Division C  Sales ??1,250,000 Net operating income $40,000$25,000$75,000 Average operating assets 400,000?? Return on investment ?20%15% Margin 0.100.05? Turnover 1.2?? Target ROI 14%12%10%\begin{array}{lrrr} & \text { Division A } & \text { Division B } & \text { Division C } \\\text { Sales } & ? & ? & 1,250,000 \\\text { Net operating income } & \$ 40,000 & \$ 25,000 & \$ 75,000\\\text { Average operating assets } & 400,000 & ? & ? \\\text { Return on investment } & ? & 20 \% & 15 \% \\\text { Margin } & 0.10 & 0.05 & ?\\\text { Turnover } & 1.2 & ? & ? \\\text { Target ROI } & 14 \% & 12 \% & 10 \%\end{array} What is the residual income for Division A?

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