In August,the Universal Solutions Division of Jugan Corporation Had Average

question 43

Multiple Choice

In August,the Universal Solutions Division of Jugan Corporation had average operating assets of $670,000 and net operating income of $77,500.The company uses residual income,with a minimum required rate of return of 12%,to evaluate the performance of its divisions.What was the Universal Solutions Division's residual income in August?

• A)$2,900
• B)-$2,900
• C)-$9,300
• D)$9,300