Black Sea Company Has Two Divisions,the Old Division and the New

question 74

Essay

Black Sea Company has two divisions,the Old Division and the New Division.Last year,the Old Division earned $66,000 using average operating assets of $550,000.Last year,the New Division earned $260,000 using average operating assets of $2,000,000.Minimum required rate of return for Black Sea is 9%.
Now assume that the minimum required rate of return for Black Sea is 12%.
A. For the Old Division, residual income is_____
B. For the New Division, residual income is_____ C. For the Old Division, residual income is_____
D. For the New Division, residual income is_____

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Definitions:

Carbon Dioxide Emissions

The release of CO2 into the atmosphere, primarily from burning fossil fuels, which contributes to global warming and climate change.

Land Use

Refers to the management and modification of natural environments or wilderness into built environments such as settlements and semi-natural habitats.

Biomass Fuels

Renewable energy sources derived from organic materials such as wood, waste, and alcohol fuels.

Sources Of Carbon

Origins or processes that release carbon into the atmosphere, including both natural and human activities.