Division B Had an ROI Last Year of 15

question 18

Multiple Choice

Division B had an ROI last year of 15%.The division's minimum required rate of return is 10%.If the division's average operating assets last year were $450,000,then the division's residual income for last year was:

• A)$67,500
• B)$22,500
• C)$37,500
• D)$45,000

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Definitions:

Appeal to Consumers

The process of attracting potential customers or clients by highlighting the benefits or attractiveness of a product or service.

Cognitive Strategies

Techniques or methods employed to facilitate learning, problem-solving, and memory, often by organizing information or employing mnemonic devices.

Pattern Recognition

The ability to detect trends, sequences, or similarities in data, often used in decision-making and prediction analyses.

Large Market

A broad and extensive market segment with a significant number of potential customers.