Abbe Company Reported the Following Financial Numbers for One of Its

question 22

Multiple Choice

Abbe Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,100,000; sales of $4,525,000; cost of goods sold of $2,550,000; and operating expenses of $1,372,000. Assume a target income of 10% of average invested assets. Compute residual income for the division:

• A) $203,000.
• B) $193,000.
• C) $150,500.
• D) $60,300.
• E) $197,500.

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