The West Division of Fitzmaurice Corporation Had Average Operating Assets

question 92

Multiple Choice

The West Division of Fitzmaurice Corporation had average operating assets of $450,000 and net operating income of $87,300 in November. The minimum required rate of return for performance evaluation purposes is 18%.
-What was the West Division's residual income in November?

• A) -$15,714
• B) $15,714
• C) $6,300
• D) -$6,300

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