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

question 7

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 C Division's cost of capital last year?

• A) 8%.
• B) 12%.
• C) 18%.
• D) 20%.

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Definitions:

DNA

The molecule that carries genetic instructions used in the growth, development, functioning, and reproduction of all living organisms.

Metabolism

The set of life-sustaining chemical reactions in organisms, including processes for converting food to energy, constructing cellular materials, and discarding waste.

Glucose

An elementary sugar vital for energy in living entities and a key element of several carbohydrate types.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in the air and absorbed by plants in photosynthesis.