The Labrador Falls Company Has Three Divisions: a Division,B Division,and

question 76

Multiple Choice

The Labrador Falls Company has three divisions: A Division,B Division,and C Division. $\begin{array}{|l|r|r|r|}\hline & \text { A } & \text { B } & \text { c } \\\text { Sales }& \$ 320,000 & \$ 540,000 & ?\\\hline \text { Net operating income } & 60,000 & ? & \$ 24,000 \\\hline \text { Residual income }& ? & 36,000 & 14,400 \\\hline \text { Average Division } \\ \text { Assets } & 250,000 & 320,000 & 80,000 \\\hline \text { Cost of Capital } & 12 \% & 16 \% & \\\hline \text { Profit Margin } & 20 \% & 5 \% & \\\text { Asset Turnover } & ? & 4.0 & \\\hline \text { Return on irwestment } & 15 \% & & \\\hline\end{array}$ What was A Division's residual income last year?

• A) $12,000.
• B) $22,500.
• C) $30,000.
• D) $48,000.

---

Definitions:

Status Bar

A section at the bottom of a software application's window that provides users with contextual information or controls.

WordArt Outline

A feature in Microsoft Office applications that allows users to add special effects to text, like strokes or outlines, for visual emphasis.

Exterior Border

The outermost line or frame that surrounds and delineates the boundary of an object or document layout.

WordArt Fill

A feature in graphic design software that allows users to apply various visual effects, such as gradients or textures, to text.