The Following Information Pertains to the Three Divisions of Zorro

question 103

Multiple Choice

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

• A)($36,000)
• B)($16,000)
• C)$36,000
• D)$45,000

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Definitions:

Cartoons

Illustrated visual art forms, often humorous or satirical, that are presented in various media platforms like newspapers, television, or the Internet.

Deceit

The intentional concealment or misrepresentation of information with the intent to deceive or cheat.

Tort Law

A branch of civil law dealing with situations where one's wrongful conduct causes harm or loss to another, leading to legal liability.

Legal Limitations

Refers to the restrictions or time limits within which legal action can be taken, such as statutes of limitations.