Terra Company Has Two Divisions,the Retail Division and the Wholesale

question 29

Multiple Choice

Terra Company has two divisions,the Retail Division and the Wholesale Division.The following information was gathered for the two divisions for the current year: $$\begin{array} { l l c } & \text { Retail Division } & \text { Wholesale Division } \\\text { Operating income } & \$ 2,500,000 & \$ 6,000,000 \\\text { Operating assets } & \$ 16,000,000 & \$ 36,000,000\end{array}$$ Terra Company has set a target return on investment (ROI) of 15% for both divisions.
Which of the following statements is accurate?

• A) Residual income for the wholesale division was $100,000.
• B) Residual income for the wholesale division was $600,000.
• C) Residual income for the retail division was $600,000.
• D) None of these answers are correct.

---

Definitions:

Essential Functions

Core duties or tasks of a job that are necessary to carry out the position's purposes and requirements.

Disparate Impact Claim

A legal claim that alleges policies or practices have a discriminatory effect on a protected class, even if the discrimination was not intentional.

Minimum Wage

The lowest legal hourly pay for workers, set by government law.