The Manager of Gamma Division Projects the Following for Next $\begin{array}{ll}\text { Sales } & \$ 100,000 \\\text { Operating income } & \$ 30,000 \\\text { Operating assets } & \$ 200,000\end{array}$

question 57

Multiple Choice

The manager of Gamma Division projects the following for next year:
The manager can invest in an additional project that would require $30,000 investment in additional assets and would generate $4,200 of additional income. The company's minimum rate of return is 12%.
$\begin{array}{ll}\text { Sales } & \$ 100,000 \\\text { Operating income } & \$ 30,000 \\\text { Operating assets } & \$ 200,000\end{array}$
-Refer to the Figure.What is the residual income for Gamma Division without the additional investment?

• A)$4,200
• B)$6,000
• C)$6,600
• D)$24,000

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Definitions:

Prosocial Behaviour

Voluntary actions intended to benefit or help others without the expectation of external rewards.

Traditional Theories

Established principles and ideas that serve as the foundation for understanding various aspects of human behavior and societal functions.

Kitty Genovese

An American woman whose 1964 murder in New York City highlighted the bystander effect and led to research on diffusion of responsibility and the establishment of the 911 emergency system.

Evolutionary Perspective

A theoretical approach that explains various aspects of human nature as a result of evolutionary adaptation.