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

question 112

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: Terra Company has set a target return on investment (ROI) of 15% for both divisions
Which of the following statements is accurate?
$$\begin{array} { | l | l | l r | } \hline & { \text { Retail Division } } & { \text { Wholesale Division } } \\\hline \text { Operating income } & \$ 2,500,000 & \$ 6,000,000 \\\hline \text { Operating assets } & \$ 16,000,000 & \$ 36,000,000 \\\hline\end{array}$$

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

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Definitions:

Bullied

Being subjected to repeated aggressive behavior, physical or psychological, by an individual or group, intending to harm or intimidate.

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The understanding that objects continue to exist even when they are out of sight, developing in infancy.

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Individuals who provide care to others, especially children, the elderly, or those with disabilities, offering physical, emotional, and social support.

Infants

Early stage of human development, typically referring to children from birth to 12 months of age, characterized by rapid growth and significant milestones such as crawling and the development of basic language skills.